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The current turbulence in policy making for higher education is creating a series of dilemmas for universities and colleges engaging in expansion whilst at the same time protecting high standards for learning and teaching as well as research. In this article, the specific application of computer-assisted assessment (CAA) is discussed as a method for coping with large class sizes whilst also providing meaningful feedback to students on their coursework submission, and without dominating staff time. A case study is presented (based on one department within a new university in South Wales, UK),which draws on three other higher education institutions' experiences of CAA applications. This includes a series of interviews with lecturers in order to highlight key concerns about the consequences of quality assurance at both pedagogic and management levels. Resourcing issues were paramount, and the paper concludes with the recommendation that the application of CAA should be reinforced by a research focus so that such learning and teaching developments can be critically evaluated whilst also generating research activity. [ABSTRACT FROM AUTHOR]