To alleviate degradation of sound quality which may be caused by pre-echoes and bit starvation. An acoustic analyzer analyzes an audio signal to calculate perceptual entropy indicating how many bits are required for quantization. A coded bit count monitor monitors the number of coded bits produced from the audio signal and calculates the number of available bits for the current frame. Based on the combination of the perceptual entropy and the number of available bits, a frame division number determiner determines a division number N for dividing a frame of the audio signal into N blocks. An orthogonal transform processor divides a frame by the determined division number and subjects each divided block of the audio signal to an orthogonal transform process, thereby obtaining orthogonal transform coefficients. A quantizer quantizes the orthogonal transform coefficients on a divided block basis.