We use behavioral methods, magnetoencephalography, and functional MRI to investigate how human listeners discover temporal patterns and statistical regularities in complex sound sequences. Sensitivity to patterns is fundamental to sensory processing, in particular in the auditory system, because most auditory signals only have meaning as successions over time. Previous evidence suggests that the brain is tuned to the statistics of sensory stimulation. However, the process through which this arises has been elusive. We demonstrate that listeners are remarkably sensitive to the emergence of complex patterns within rapidly evolving sound sequences, performing on par with an ideal observer model. Brain responses reveal online processes of evidence accumulationdynamic changes in tonic activity precisely correlate with the expected precision or predictability of ongoing auditory input-both in terms of deterministic (first-order) structure and the entropy of random sequences. Source analysis demonstrates an interaction between primary auditory cortex, hippocampus, and inferior frontal gyrus in the process of discovering the regularity within the ongoing sound sequence. The results are consistent with precision based predictive coding accounts of perceptual inference and provide compelling neurophysiological evidence of the brain's capacity to encode high-order temporal structure in sensory signals.A ccumulating work suggests that the brain is sensitive to statistical regularities in sensory input, at multiple time scales (1-9). The auditory system has been a useful testbed to investigate these processes (2, 3, 9-13), largely due to the vantage point provided by the mismatch negativity (MMN) paradigm (12, 13). The MMN is an auditory-evoked response generated by sounds violating some regular aspect of the prior sequence and is hypothesized to reflect a discrepancy between the memory trace, or expectations, generated by the standard stimulus, and the deviant information (12,13). A large body of MMN work has demonstrated that listeners are sensitive to the violation of a variety of acoustic sequences, including very complex regularities (14, 15), and interpreted as indirect evidence for exquisite sensitivity to patterns in sound.Due to the physical constraints that characterize animate objects in the environment, sounds emanating from those sources are usually statistically regular and often repetitive (e.g., flapping wings and locomotion sounds). The ability to discover regularities within the sensory input is therefore a critical aspect of scene analysis: providing the anchor that enables an observer to identify and track a behaviorally relevant signal from within the brouhaha of a busy scene. Detecting temporally recurrent auditory features enables listeners to recognize auditory objects (because most auditory signals only have meaning as patterns over time), but also to form rules, or models, that characterize the past and expected behavior of objects within the environment (4, 16). Indeed, experimental work demonstrat...