It would, that is sort of the point of it.
But if you're not scare of virus, then it's can be disabled. I have it on, but I have never turned down an install, so no virus has tried to install on my computer. So practically it's pointless for me, but I'm used to it by now so it gets to stay.
@LadyCrimson In Vista, if you disabled UAC it was gone and you never had to asl for admin rights. If you turn off notifications completely in Windows 7, I think it works the same way. A colleague of mine said it did, so I think it does.