Certainly anything is possible. In regards to the auditing features, I would imagine that it (Novell) has it. The question is: is it turned on and checked regularly? It's one thing to have it; it's entirely another to actually use it.

Now is it possible that the school has a program that watches where students go, folder-wise, that is? You see, if it does, this causes a potential problem for the administrators. If they went into the admin program on the computer, then someone that knows about the program could watch where they go, correct?
Why would it be a problem for the admins since they are supposed to be ethical about what they do? And, since the logs would be viewed only by the admins, then gaining access to the program won't allow you to see much other than the program itself (kinda like looking at event viewer as a regular user. You can see application logs but not security sensitive logs).

Unless perhaps I'm not clear as to what the issue is you are bringing up..