Children talking inappropriate towards each other

So I was taking care of my friends kids with my daughter and they went upstairs and were playing together. I went upstairs and was eavesdropping and overheard them asking each other if they have ever kissed anyone or kissed anyone’s butt. These kids are 5-6 years old and very inappropriate talk, but I shut it down fast. I made them come downstairs and play in the open, but I want to have a real conversation with my daughter about boundaries and appropriate/inappropriate talk but I don’t even know how to approach it. I also told my friend what they were talking about and she just laughed it off, but I really don’t take that shit lightly. I know kids are just curious, but child sa can happen between children. I know one thing my daughter is never staying over there without me. Anyone else ever had to deal with this and have any advice?