Acoustic neuromas are benign, slow-growing tumors that usually originate from the vestibulocochlear nerve. Tumors can lead to impaired conduction in the auditory pathway, particular between the vestibulococlhear nerve and the superior olivary nucleus. 

Each wave of a BAEP represents a different region of the brainstem auditory evoked potential. 

Wave I = cochlear nerve 
Wave III = superior olivary nuclear 

Acoustic neuromas will have prolonged wave I-III interpeak latency