It is absolutely traceable - whether it's running, for how long, how often, etc. I can think of two management packages which will do that, that I've used when directed to by Legal.
As someone said though - IT general does not, and should not, be in the middle of disciplinary items like that and also, at least in my case, I do not have time to pro-actively track down violations of the acceptable use policy. If it comes to my attention, I'd have to take action - but other than that, there are a million other things to do, trust me.
Like chasing malware.
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