The pedagogy underlying online learning and teaching is being reconceptualised to incorporate the opportunities being offered by the development of online educational settings. The pedagogy of constructivism and in particular socio-constructivism is underpinning much of the online learning and teaching developments currently being developed. The developments in online learning and teaching however are not being matched by developments in computer based assessment. The scope of computers to offer varied, adaptive and unique assessment is still underdeveloped according to Brown, Race and Bull (1999). This paper briefly reviews the theories of learning and their relationship with traditional forms of assessment and seeks to argue for the need to further develop online assessment tools to further facilitate the growth in process based learning activities such as collaborative and cooperative group work consistent with a socio-constructivist pedagogy.