I agree that K&U is gained as you say, but the only way to show it has is to answer questions on it. Asking questions to cover knowledge and understanding is therefore the best way, this can be during, or at the end of the unit, verbally or by written tests. What you say in the last sentence seems to say you meet the assessor who then checks your knowledge and understanding by asking questions, but you think questions and answers on the knowledge and understanding would be better? I can't get my head round your point, sounds to me like saying that painting a door red is the way we do it, but that having the door painted red would be better.
Cross referencing what you have done to K&U is definitely not right and should be rejected by External Verification, that is probably why your service no longer accepts that. Changes in assessment processes should eb promulgated, but to assesors and form them to candidates. That you joined a later programme means you need not be told, after all it is your assessor who should be guiding you, advice from prior candidates is valuable, but not always right as processes may change, in order to improve the quality of the system - in this case to overcome very, very poor prior practice.