A method for processing audio from varying audio sources includes providing a variable audio response, including audio gain, balance and tonal quality setting on a per channel (or per source or both) basis that a user can adjust when setting up the receiver. For example, a user can establish a relative gain setting from null4 dB to null4 db in 2 dB increments, increment rear volume while increasing base response for the audio so that the audio is compensated in accordance with this setting before sending the audio to the speakers. This enables a user to account for those channels or sources that are out of the normal for the user in terms of loudness and tone, i.e., either the channels are too loud or too soft relative to most of the other channels or sources. Each channel or source would be preset to 0 dB, thereby providing no compensation. According to this method, the user first sets his volume control to a place where the user finds satisfactory. Then, when the user tunes to a given channel or source and notices that this channel typically requires the user to adjust the volume (either up or down), the user can adjust the automatic audio gain setting for this channel to account for this deviation. Other possible gain settings could be from null10 dB to null10 db in 1 dB or 2 dB increments, just to name one possible example. The user can also adjust the balance, tonal quality and other aspect of the audio signal as desired.