Is it possible to mention which university they go to? Different uni's have different procedures.
They need to work out what their story is as well, obviously. It looks like A and B are both in the shit and they need to figure out if they're going to say it as what it is.
It can get into pretty serious shit, monash actually has a law (monash university act 2009) that lets it deal with things like this.
Here's a good idea of some of the things that can go down (
http://adm.monash.edu/legal/legislation/council-regulations/student-discipline-regulations-aust-and-msa.pdf ).
At least under the Monash statues, not only is cheating an offense but so is assisting to cheat, both of them are in the shit. If it gets to the committee, you're allowed to have a lawyer if you so choose, so, that kind of illustrates how serious it can get.
They're not there to totally destroy you and i'm sure they're compassionate but your friends really needs to start getting multiple balls rolling. Get in touch with the student union, see if they can help, i know at monash they have people assigned to these things. Make sure they also know what exactly is going on.