Students are preoccupied with what constitutes the assessment in their chosen field. In other words, assessment usually defines what students regard as important, how they spend their time and how they come to see themselves as students and then as graduates. In general assessment is a central element in the over all quality of teaching and learning in higher education. Thus, to change student learning, consequently to produce competent graduates, we need to care about assessment and grading. Recognizing this role of assessment and grading for quality learning, the Bahir Dar University had established Institutionalized Testing Center which was functioning until its restructuring to Quality Audit and Assessment Center, as a wing for the Quality Assurance and Enhancement Center of the University to comply with the recommendation of HERQA. HERQA in its audited report of the University in 2008 recommended that the University should establish a quality assurance office and its organizational structures should clearly appear in the organizational structure of the University. As a result, the University has taken the former Testing Center to be a part of the newly established quality assurance and enhancement center. It has the role of checking whether the procedures are in place to assure quality learning, and controlling the assessment and grading processes which were actually started earlier.