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To add audio to an After Effects sequence merely add file from the drop down menu, select the appropriate file and click enter. You can drag the composition down to the bottom to include within your current working composition.
To create a fade in / / fade out / / gradual increase in volume create a key frame and move the audio up and down. You can also make it a more instant sound by toggling on / / off the hold key frame option.
You have to make sure that the colume never goes above the yellow light. If it is in the red then it means that not everyones computer will be able to reveive the audio effectively as it is too loud. Ideally you never want it to go over the edge of the green light. This will ensure that the sound is revieved the way you have created it.