Response #6 from the MAFIA here...
Cheating is memorizing only the letter answers to the questions in sequential order. Using gouge is looking at the question and being able to pick out the answer if the test is given in a different order. We had the "gouge" (ie, every test question to every EPQ in order) during Phase 2 and 3, but usually there were 3 or 4 wrong answers in the gouge. Each Sunday night, we'd go through and look up every answer to the questions we had in front of us. The IPs knew we did this and even expected it, but to make sure we weren't just memorizing the questions and answers, they would make us point out where some of the answers were in the regs.
When the facts come out about this incident at CBM, I suspect that a hell of a lot more was going on than just people "cheating".