The Department for Education said that Ofsted is an "independent and impartial regulator of schools" which carries out an "invaluable role".
Exams and tests help children to develop greater creativity by requiring students to show they have absorbed and retained knowledge and can deploy it effectively. By gaining rigorously tested, high quality qualifications, children can prove their skills and knowledge to future employers and further education institutions.
Ofsted has responded to claims that its inspections should be replaced with reports carried out by parents and staff.
It said that any changes to the current system "are a matter for the Government and for Parliament."
However, across remits, more than nine out of 10 providers consistently tell us they are happy with their inspection, and believe it will help them improve.
Inspectors carefully consider the views of parents and pupils as part of their inspection evidence, and are now spending more time than ever before observing lessons and teaching. Our reports are a valuable, and independent, source of information for parents on the quality of their children's education.
A report from a think tank has argued that Ofsted should no longer be responsible for inspecting schools and instead offer guidance and collect information on the "innovative and inspiring work" that is going on in schools.
The responsibility for producing reports about schools would be transferred to the parents, teachers, other staff and students of a particular school, it said.
The reports, produced once a year would include:
Information on everyone's experience of the school and set out plans for improvement
They would replace the current Ofsted inspection system, which gives schools one of four ratings - outstanding, good, requires improvement and inadequate
Current tests and exams should be replaced with a wider range of qualifications to give pupils more choice and to stop schools from focusing on targets