In a method and system for audio level detection and control, an amplitude of an audio signal may be compared to a threshold and an attenuation applied to the audio signal may be adjusted based on the comparison. In instances that the amplitude of the audio signal is greater than or equal to the threshold the adjustment may comprise increasing a first attenuation factor until the amplitude of the audio signal is less than the threshold. The first attenuation factor may be subsequently decreased until the amplitude of the audio signal is greater than or equal to the threshold or until the first attenuation factor is equal to zero. The attenuation of the audio signal may be controlled via a digital gain circuit within the hardware audio CODEC, wherein an overall attenuation factor of the digital gain circuit is a sum of the first attenuation factor and a second attenuation factor.