When we say
width:auto;
width will never exceed the total width of parent element. Maximum width is it's parent width. Even if we add border, padding and margin, content of element itself will become smaller in order to give space for border, padding and margin. In case if space required for border + padding + margin is greater than total width of parent element then width of content will become zero.
When we say
width:100%;
width of content of element will become 100% of parent element and from now if we add border, padding or margin then it will cause child element to exceed parent element's width and it will starts overflowing out of parent element.