This study assessed the effects of speech misidentification and cognitive processing errors in normal-hearing adults listening to degraded auditory input signals simulating cochlear implants in reverberation conditions. Three variables were controlled: number of vocoder channels (six and twelve), instantaneous frequency change rate (none, 50, 400 Hz), and enclosures (different reverberation conditions). The analyses were made on the basis of: (a) nonsense word recognition scores for eight young normal-hearing listeners, (b) 'ease of listening' based on the time of response, and (c) the subjective measure of difficulty. The maximum score of speech intelligibility in cochlear implant simulation was 70% for non-reverberant conditions with a 12-channel vocoder and changes of instantaneous frequency limited to 400 Hz. In the presence of reflections, word misidentification was about 10-20 percentage points higher. There was little difference between the 50 and 400 Hz frequency modulation cut-off for the 12-channel vocoder; however, in the case of six channels this difference was more significant. The results of the experiment suggest that the information other than F0, that is carried by FM, can be sufficient to improve speech intelligibility in the real-world conditions.