This paper relates to the establishment of a model of the Auditory System (AS). The present model is based on a Logic Cancellation and Equalization Process, applied to the firing rate of Auditory Nerve Endings. The output of the process is a set of Frequency Selective Neurons, which support the coding of the sound signal. The model establishes the coding of loudness, tonality and delay of sound signals in the AS. The paper analyzes the frequency and time responses and linearity of the process. The paper also justifies the role of the transduction process in the coding process and masking in the AS. Keywords: Logic Cancellation and Equalization Process; Frequency Selective Neurons; Auditory Nerve Ending; Auditory System.