You make it sound as if the ppp protocol exists on the line. A router does not try to detect or "see" if the ppp protocol is active on a line. It negotiates it between itself and a neighboring router. In the case of ppp, the router starts with LCP. Authentication is one of the many LCP options that, if configured, must be successfully negotiated along the journey to "protocol up." If anything in the LCP process fails, the protocol stays down. Also, in the case of CHAP for ppp, authentication is renegotiated every two minutes. If at any time after "protocol up" the authentication doesn't pass, the router takes the interface back to "protocol down."
All of this and much more is widely available in books and on the internet. With all due respect, it is OK to make suggestions that you aren't sure of. We are all trying to help one another out and sometimes the best we can do is to make a suggestion that we aren't ourselves quite sure of. But you really shouldn't be stating things as fact that you obviously haven't read up on.