An audio format refers to the way sound is encoded and stored in digital files. Different formats can affect the quality, size, and compatibility of audio files. Common audio formats include MP3, WAV, and AAC, each serving different purposes, such as streaming, high-quality playback, or efficient storage. Audio formats can be categorized into two main types: lossy and lossless. Lossy formats, like MP3, reduce file size by removing some audio data, which can affect sound quality. In contrast, lossless formats, such as WAV or FLAC, preserve the original audio quality but result in larger file sizes.