Audio signal processing is a part of the digital signal processing (DSP) field in science and engineering that has developed rapidly over the past years. Expertise in audio signal processingincluding speech signal processing-is becoming increasingly important for working engineers from diverse disciplines. Audio signals are stored, processed, and transmitted using digital techniques. Creating these technologies requires engineers that understand real-time application issues in the related areas. With this motivation, we designed a graduate level laboratory course which is Audio Processing Laboratory in the electrical engineering department in our school two years ago. This paper presents the status of the audio processing laboratory course in our school. We report the challenges that we have faced during the development of this course in our school and discuss the instructor's and students' assessments and recommendations in this real-time signal-processing laboratory course.