I'm sure this 'Carol' was very offended that you did not find her attractive.

Now back to the actual topic itself which is viewing explicit and risky materials on work time and on work property.

Businesses should disclose their privacy policy with their employees and state that their office machines are not personal property and must not be used to engage in work inappropriate activities.

One just assumes this, but if it were made clear then it could put the fear into those with less of a technical ability i.e. the ones who can't hide their activities.

I would expect anyone caught engaging in this type of behaviour to be reprimanded immediately. It's beyond unacceptable within an public space yet alone an office environment, wait until you get home to enjoy your scandalous content.