The paper describes a module for online assessment in AHyCo (Adaptive Hypermedia Courseware) learning management system (LMS), developed at the Faculty of Electrical Engineering and Computing (FER), University of Zagreb. A data model for knowledge assessment has been described, which includes defining questions and assessments. Along with standard, multiple choice questions, new programming questions for automatic evaluation of programming assignments or SQL queries are being introduced. A presentation of the system architecture and functionality of module for knowledge assessment has been given. This enables a new approach to creating, assigning and evaluating questions and assessments. The paper discusses the usage of the described system in the course “Programming and Software Engineering” at FER for a continuous knowledge assessment introduced in the Bologna process of reforming the universities.