English is the medium of instruction in Ethiopian higher learning institutions. For students to be effective in their academic achievement, they should be proficient in the English language. They should be able to use the language effectively in different circumstances. To realize students' language competence, Ethiopian English textbooks are designed in line with the features of Communicative Approach. However, most high school and preparatory English teachers apply objective tests and the Ethiopian Higher Educational Entrance Certificate English Examination uses only multiple choice format to assess students language proficiency. In other words, there is a gap between the English language teaching and testing. In Ethiopia, students join universities based on EHEECE examination and preparatory English average scores results. Objective tests are solely used in both examinations and such kind of tests may not be conducive to appraise learners' language proficiency and the examinations may not predict candidates' future academic success.