Tremendous development in the digital technology has necessitated the copyright protection and authentication of the images, audios, video and documents using watermarking techniques. Audio watermarking is more challenging due to the fact that dynamic supremacy of hearing capacity over the visual field. Encryption of the watermark signal or image enhances its security under malicious attacks through high entropy. In this paper, performance of the proposed audio encryption algorithm using modified elliptical curve cryptography and Arnold transform is evaluated to determine its suitability for audio watermarking techniques. Elliptical curve cryptography benefits from smaller key size and large key space without sacrificing on level of security. Arnold transform is commonly employed in two dimensional domains for scattering of the pixels in an image. Single dimensional audio signal was converted into two dimensional signals before applying Arnold transform through elliptical curve cryptography. Experimental simulations were performed to evaluate the performance of the encryption algorithm through appropriate parameters and under general signal processing attacks. Audio encryption finds applications in the area of ownership protection, temper detection and authentication of music's, airline traffic monitoring and controlling, broadcast monitoring and voice activated commands for machine control and operations.