Testing/grading always seemed a curiously 'western' thing to me.
Eastern philosophies generally have no start or end, so testing is not part of the concept. In MA we certainly now judge a person more to do with their 'grade'.
As for my views on testing, my only thought is that it should be done in the most alien environment possible, uncomfortable and hostile. Thats when you see if someone has learned anything. Not a very aiki way to see things I know, but I hope you'll see my reasoning. Yeah?
But that never really happens.
Well, you never get a 'grade' from it anyway!