You must not have seen a modern home cheating rig. The student read/scrolls through the entire test to read each question, as is recommended. A small camera that sees the screen transmits the questions to a team in another room. Each team member works on one question at a time. A single person then communicates the prepared answers back to the test taker via an earpiece, one small enough that it isn't detectable on the camera. Such a rig costs a few hundred dollars at most.

Another common trick: looking at your keyboard isn't cheating. Any small display secreted on your keyboard will go unnoticed. You will just look like you aren't a great typist, someone who needs to look at the keys.

Want to go real hardcore? Cut into your laptop and send the screen/keyboard/mouse signals to a different monitor. Then you can have an actor sit in front of the webcam pretending to take the test. I doubt they are correlating keypress sounds to characters appearing on the screen... yet. As any security expert would tell you: if the attacker has unfettered access to your hardware then all bets are off.