Put simply, auditory perception refers to the interpretation of information sent to the brain via the ears and as such covers much more than just functional hearing.
Children experiencing auditory perceptual problems hear words differently from the way other children hear them. They confuse similar sounding words (e.g. train / plane) and often “forget” messages and instructions.They experience difficulties with regards to reading as they cannot remember, or hear accurately, the words and sounds given to them by the teacher. Children with auditory discrimination difficulties react slowly to instructions given in class and often wait to see how the other children react before copying them.
It is a vital component of literacy development and kids learning to read and spell rely heavily on their auditory perception skills.
Related article: How to support your child in developing auditory processing skills