Narrators are liars?

I have a question.

When you read a story that is written in the first person, do you get suspicious?

Maybe it is just me, but I always take first person reports with a grain of salt, both in fiction and in RL.

If a friend has just done a major presentation and says to me:

I came out of the bathroom just as they were beginning to introduce me. Some of the audience started to laugh as I went up the aisle, because there was a piece of toilet paper on my shoe. Well, I did get flustered and made a few mistake at first, but I got over it.

Then I would wonder if someone else might be saying:

She started running up the aisle and there was a roll of TP trailing from her foot all the into the bathroom. Half the audience was rolling on the floor and the rest were in tears of laughter. But she went on with it and after about ten minutes of mumbling and stuttering made it though the whole speech.

Do you do that? or do you accept the report at face value?

And of course that report says something about the person too. Another person might have said:

It was mortifying and awful and I'll never show my face again!! Yes, I finished but it was all too late!! No one in the world will ever respect me again.

And whether you do it in real life or not, do you do it with first person stories, do you think that everything the narrator says is true? Or do you also look for what the way the narrator talks, what she says and does not say, tells you about the character?

What about when you write, do you show the protagonist's character that way?

Just wondering and musing in the absence of a muse.

Joy;Jan