Distance learning is an excellent method of adult learners to possess the desired higher degree of qualification. Quality of distance education should be maintained properly in order to compete with the present world. Assessment plays a vital role to measure the quality of distance education system. The traditional practice of assessment has changed to meet the need of the modern society. Assessment is no longer used for grading and certification, rather it has linked with learning and skill development of the learners. In India, the Indira Gandhi National Open University (IGNOU) has been providing opportunities of higher education to a large segment of population which is very difficult or impossible by the formal education system. Therefore, a study to analyze the current assessment process of distance education system of IGNOU is needed to highlight strengths and problems in the system. It can be helpful to review the current system to improve its output and establish assessment system on effective basis in future. In this paper, academic assessment strategies used by IGNOU for the learners are discussed. Views/perceptions of the learners and evaluators on the assessment system of IGNOU are analyzed and constructive suggestions are given to meet the challenges of assessment.