On my iPhone, my date and time are set automatically. Is there any way to do the same thing on the iPad to ensure it always displays the correct time?
It should update automatically by default (Settings → General → Date & Time).
Are you running the latest iPad OS (3.2.2)? I have a vague recollection of a bug in the iPad that caused the time to go out of sync that might have been fixed in a software update. I can't seem to find any info about it, but you might want to update the software just in case.