This paper examined the use of assessment techniques in extensive reading and students' and teachers' perceptions on the practice of extensive reading. A total of 232 university students who were placed at different proficiency levels of classes and 13 professors participated in the study by completing a questionnaire. In-depth interviews were carried out with a selected number of student and professor volunteers. Data were analyzed using t-tests to compare two different groups of students. Results revealed that writing short answers and assessments involving discussion with peers and professor were utilized more at the basic level, but students at the basic level reported discussion with peers and professor as the most effective assessment technique. In contrast, at the intermediate level, multiple-choice questions and T/F statements were used more as assessments, but students at the intermediate level reported that writing one's opinion on themes was the most effective technique. Both groups believed that reading graded readers is helpful in improving reading skills and vocabulary as well as understanding other cultures. Results further revealed that professors preferred to use writing short-answer questions and in-class discussion as assessments on graded readers; however, they responded that a writing task was the most adequate type of assessment. In addition, they reported that graded readers are helpful in improving all language skills and favored the use of graded readers as part of the language program.