The auditory nerve is composed of two parts. The cochlea located in the inner ear has tiny nerve cells responsible for transmitting sounds from the middle ear. The second part of the auditory nerve is the auditory nerve also referred to as the vestibulocochlear nerve or the eighth cranial nerve.owever, this is not usually the case. Most deaf people have conductive hearing loss due to damage in the middle ear structures. Neural hearing loss due to auditory nerve damage is much less common than conductive hearing loss and is usually irreversible.