Acoustics and audio is covered and the manipulation and processing of audio signals. It is shown how Fourier analysis of the soundfield yields to the representation of a soundfield with plane waves. These and other acoustic insights are used to explain microphone techniques and reproduction of the soundfield. Spatial hearing is covered in detail and used to motivate stereo and surround mixing and audio playback. In addition, insights on the principles of auralization and virtual acoustics are given, and the simulation of sound propagation in rooms will be further discussed. The short-time Fourier transform is introduced as a tool for flexible manipulation of audio signals, suchs as filtering, delaying and other spectral modification. Matrix surround, audio coding, and beamforming are also treated.