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SmartCover overrides Password?

Is this normal behavior? The iPad is set to lock after 2 minutes and ask for a password, but even after having the iPad locked for more then 2 minutes does the SmartCover wakeup the device and bypasses the password lock.

Perhaps this is a misunderstanding on my side, but I assumed that the SmartCover could wake up the device during the unlocked interval, but not once the passcode time has been reached.

If the cover overrides the password anytime, then I consider it to be a huge security risk and a complete design fail. Make no mistake, I like the SmartCover for it's feel and ease of use, but I had no idea that it is either SmartCover or Password protection.

Does this sound right, or am I overlooking something?
 
I don't have mine yet but I was under the impression that all the cover did was the same thing the button does, turns it on to the password screen. Are you saying yours doesn't do this?
 
My bad.

Passcode lock and Auto-lock are two different timers. I had set the auto-lock to 2 minutes, assuming that it will ask for the password after being locked for 2 minutes, so yeah, a confusion on my side. I have now changed the passcode-lock time to immediately and now the cover wakes the iPad, but still asks for the password.

Conclusion: The iPad is smarter than me
 

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