Objective. Degradations of transmitted speech have been shown to affect perceptual and cognitive processing in human listeners, as indicated by the P3 component of the event-related brain potential (ERP). However, research suggests that previously observed P3 modulations might actually be traced back to earlier neural modulations in the time range of the P1-N1-P2 complex of the cortical auditory evoked potential (CAEP). This study investigates whether auditory sensory processing, as reflected by the P1-N1-P2 complex, is already systematically altered by speech quality degradations. Approach. Electrophysiological data from two studies were analyzed to examine effects of speech transmission quality (high-quality, noisy, bandpass-filtered) for spoken words on amplitude and latency parameters of individual P1, N1 and P2 components. Main results. In the resultant ERP waveforms, an initial P1-N1-P2 manifested at stimulus onset, while a second N1-P2 occurred within the ongoing stimulus. Bandpass-filtered versus high-quality word stimuli evoked a faster and larger initial N1 as well as a reduced initial P2, hence exhibiting effects as early as the sensory stage of auditory information processing. Significance. The results corroborate the existence of systematic quality-related modulations in the initial N1-P2, which may potentially have carried over into P3 modulations demonstrated by previous studies. In future psychophysiological speech quality assessments, rigorous control procedures are needed to ensure the validity of P3-based indication of speech transmission quality. An alternative CAEP-based assessment approach is discussed, which promises to be more efficient and less constrained than the established approach based on P3.