To be slightly more accurate...
SharePoint does not authentication, IIS does per the web.config settings
SharePoint does authorize users to access site collections and whatnot
SharePoint does cache user profiles. They are added to the database at
either first login, OR with the profile sync.
For instance, user Bob first logs into sharepoint. He has an email address
of bob@... at that time.
Someone updates's Bob's email address to bob1@.... This change will
not automatically be reflected in sharepoint unless user profile synch is
turned on OR the ability to let user's update their own profile is enabled.
This generally only applies to AD/ADAM based scenarios.