A technique is provided for limiting distortion of an audio signal being processed for playback by an audio device. In accordance with the technique, the audio signal is compressed to generate a compressed audio signal having a level that does not exceed a compression limit. The compressed audio signal is then soft clipped signal to generate a soft-clipped audio signal having a level that does not exceed a soft clipping limit, wherein the compression limit exceeds the soft clipping limit. The technique may also include passing the audio signal through a shaping filter prior to compressing the audio signal, wherein passing the audio signal through a shaping filter comprises modifying the level of selected frequency components of the audio signal.