Audio compression, on the other hand, is an entirely different process all together. Instead of simply taking out these pieces of information the audio compression process wants to actually shrink the availability of possible frequencies.
All sound has what is called a dynamic range. This dynamic range is simply the range from the absolute loudest to the absolute quietest. Each piece of audio independently has its own dynamic range that goes from high to low. What audio compression attempts to do is to shrink that audio piece's dynamic range to a smaller average over all. This can generally lower the audio peaks, and raise up the quieter parts. This is the general rule for almost all broadcast formats, especially radio or television.
There is a huge range of audio compression types that will work with the file, and are used to alter the sound itself. Audio compression is by no means only used to shrink the files, though that can be a factor. For example, MP3s are a compressed audio file that loses quite a bit of information. They were constructed so they could be transferred more easily.