Not quite...
It's checking whether ColumnA was one of the columns specified in the SET clause of the update statement.
UPDATE Tbl SET ColumnA = ColumnA
If you had an update trigger on Tbl checking for UPDATE(ColumnA), it would be true for that update statement, even though no rows have the value of ColumnA changed.
Gail Shaw
Microsoft Certified Master: SQL Server, MVP, M.Sc (Comp Sci)
SQL In The Wild: Discussions on DB performance with occasional diversions into recoverability