An improved scheme for identifying and removing musical noise in an audio processing device can be achieved in an audio processing device that includes an analysis path with a perceptive model of the human auditory system and provides an audibility measure. The device may also identify an artifact introduced into the processed signal by the processing algorithm and provide an artifact identification measure, and control a gain applied to a signal of the forward path by the processing algorithm based on the perceptive model. An advantage is to dynamically optimize noise reduction with a view to audibility of artifacts and is applicable to hearing aids, headsets, ear phones, active ear protection systems, hands-free telephone systems, mobile telephones, teleconferencing systems, public address systems, karaoke systems, and classroom amplification systems.