Ibiki after entering the room reprimands the Sound Team for their attack. He states that nobody is allowed any fighting unless permission is given. Even if permission is given, nobody is allowed to kill. If anyone does so, they will fail the exam. The first exam is paper test. Naruto getting all tensed up until Hinata who was sitting next to him encourages him. Ibiki then moves on to explain the rules.

1. Each participant starts off with 10 points. The test consists of 10 questions each worth 1 point. The test is deductive therefore if you get all questions right, you remain with 10 points and if you mis-answer 3, you are left with 7 points.
2. The pass or fail decision is determined on the teams' total points.
3. Anyone caught cheating will have 2 points deducted. Anyone that is left with 0 points will fail the test.
4. Any team member that fails, the entire team will fail.
5. The last question of the test will be given on the 45th minute after the test starts.
6. The test will last for 1 hour.

Moments after the test starts, Sasuke realize that the test's purpose is not to be able to answer the questions, but to be able to cheat without getting caught. Naruto being the dumb one of the team struggles. Sakura, the only one knowing how to answer the questions starts doing it. As some ninjas starts to use their jutsus to cheat, Naruto begins to flip out as he doesn't know any of the questions. Hinata then offers to let him copy her answers but Naruto refuses realizing that one of the Examiners notices what Hinata might be doing. As the test continues, more and more people starts to use their techniques to acquire answers to the tests.