Steam Broadcasting: Audio not being recorded

Friends can not hear audio while watching my broadcast and Steam displays a notification saying "Steam was unable to record audio for this broadcast". What can I do to troubleshoot this issue?

General

Steam will try to capture all audio to sent to the Windows' Default Audio Device. You can determine the default device on your machine by navigating to the Windows Control Panel, selecting "Change sound card settings" and finding the device on the Playback tab marked with a green check and labeled Default Device.

Disabling Sound Effects

Enabling some sound card effects can prevent Windows from being able to capture audio. You can determine if enabled sound effects are preventing audio capture by:

1. Navigate to the Windows Control Panel (Start -> Control Panel)
2. Select "Change sound card settings"
3. On the Playback tab, find your default output device (will have a green check mark next to the icon; usually Speakers or Headphones)
4. Right click on your default output device and select Properties
5. Select the Enhancements tab
6. Write down each enabled sound effect (if you would like to enable later)
7. Uncheck all sound effects
8. Select OK
9. Restart Steam

Razer Audio Hardware

We are currently working with Razer to support recording audio on machines that use Razer audio hardware such as Kraken headsets and Razer Synapse. As a temporary work around, users can try closing the "KrakenSysAudioLauncher.exe" process through the Windows Task Manager then starting a Steam Broadcast.