If you import the template, you are able to then edit it to find out exactly what it does, as well as amend the script it uses.
The template first checks for the existance of several registry settings to identify if the machine is configured to use a WSUS server for updates. Should these checks suceed, it then runs a script to check for pending updates, download pending updates, and install them.
From what I can see, this template is more for process automation (forcing an update) rather than an actual host integrity check, as there doesn't seem to be an option for it to 'fail' this requirement.