In this thesis, we proposed a lossless audio compression algorithm. For recently years, people require more and more high quality audio, and hence lossless audio compression algorithm plays an important role. During the development stage, PC-based DAQ system is used to acquire data. The major signals we used are recorded from a interflow motor. The proposed compression algorithm is composed of a prediction module using normalized least mean square (NLMS) algorithm followed by an entropy coding with a concatenated Huffman code. Designing a low-complexity algorithm with great compression ratio is the aim of this research.