diff --git a/CHANGELOG.md b/CHANGELOG.md
index d0eb5c4b6..d7ab56c06 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -8,7 +8,8 @@ Breaking changes
 
 Added
 
-- None
+- Limit number of audits stored
+  [#405](https://github.com/collectiveidea/audited/pull/405)
 
 Changed
 
diff --git a/README.md b/README.md
index 3d8abc1da..79a33fccb 100644
--- a/README.md
+++ b/README.md
@@ -15,6 +15,7 @@ Audited supports and is [tested against](http://travis-ci.org/collectiveidea/aud
 * 2.2.8
 * 2.3.5
 * 2.4.2
+* 2.5.0
 
 Audited may work just fine with a Ruby version not listed above, but we can't guarantee that it will. If you'd like to maintain a Ruby that isn't listed, please let us know with a [pull request](https://github.com/collectiveidea/audited/pulls).
 
@@ -141,6 +142,33 @@ class User < ActiveRecord::Base
 end
 ```
 
+### Limiting stored audits
+
+You can limit the number of audits stored for your model. To configure limiting for all audited models, put the following in an initializer:
+
+```ruby
+Audited.max_audits = 10 # keep only 10 latest audits
+```
+
+or customize per model:
+
+```ruby
+class User < ActiveRecord::Base
+  audited max_audits: 2
+end
+```
+
+Whenever a user is updated or destroyed, extra audits are merged into newer ones and destroyed.
+
+```ruby
+user = User.create!(name: "Steve")
+user.audits.count # => 1
+user.update_attributes!(name: "Ryan")
+user.audits.count # => 2
+user.destroy
+user.audits.count # => 2
+```
+
 ### Current User Tracking
 
 If you're using Audited in a Rails application, all audited changes made within a request will automatically be attributed to the current user. By default, Audited uses the `current_user` method in your controller.
diff --git a/lib/audited.rb b/lib/audited.rb
index eaf34cb99..de04a09e4 100644
--- a/lib/audited.rb
+++ b/lib/audited.rb
@@ -4,6 +4,7 @@ module Audited
   class << self
     attr_accessor :ignored_attributes, :current_user_method
     attr_writer :audit_class
+    attr_reader :max_audits
 
     def audit_class
       @audit_class ||= Audit
@@ -13,6 +14,10 @@ def store
       Thread.current[:audited_store] ||= {}
     end
 
+    def max_audits=(value)
+      @max_audits = Integer(value).abs
+    end
+
     def config
       yield(self)
     end
diff --git a/lib/audited/auditor.rb b/lib/audited/auditor.rb
index 019f6a246..93c157995 100644
--- a/lib/audited/auditor.rb
+++ b/lib/audited/auditor.rb
@@ -33,6 +33,7 @@ module ClassMethods
       #
       # * +require_comment+ - Ensures that audit_comment is supplied before
       #   any create, update or destroy operation.
+      # * +max_audits+ - Limits the number of stored audits.
       #
       def audited(options = {})
         # don't allow multiple calls
@@ -43,14 +44,14 @@ def audited(options = {})
 
         class_attribute :audit_associated_with,   instance_writer: false
         class_attribute :audited_options,       instance_writer: false
-        class_attribute :keep_audits,             instance_writer: false
+        class_attribute :max_audits,              instance_writer: false
         attr_accessor :version, :audit_comment
 
         self.audited_options = options
         normalize_audited_options
 
         self.audit_associated_with = audited_options[:associated_with]
-        self.keep_audits = audited_options[:keep_audits]
+        self.max_audits = audited_options[:max_audits] || Audited.max_audits
 
         if audited_options[:comment_required]
           validates_presence_of :audit_comment, if: :auditing_enabled
@@ -206,13 +207,7 @@ def audit_create
       def audit_update
         unless (changes = audited_changes).empty? && audit_comment.blank?
           write_audit(action: 'update', audited_changes: changes,
-                      comment: audit_comment) do
-            if keep_audits && audits.count > keep_audits.to_i
-              first_audit, second_audit = audits.limit(2)
-              second_audit.merge!(first_audit)
-              first_audit.destroy!
-            end
-          end
+                      comment: audit_comment)
         end
       end
 
@@ -228,12 +223,20 @@ def write_audit(attrs)
         if auditing_enabled
           run_callbacks(:audit) {
             audit = audits.create(attrs)
-            yield if block_given?
+            reduce_audits_if_needed if attrs[:action] != 'create'
             audit
           }
         end
       end
 
+      def reduce_audits_if_needed
+        if max_audits && audits.count > max_audits
+          first_audit, second_audit = audits.limit(2)
+          second_audit.merge!(first_audit)
+          first_audit.destroy!
+        end
+      end
+
       def require_comment
         if auditing_enabled && audit_comment.blank?
           errors.add(:audit_comment, "Comment required before destruction")
@@ -327,6 +330,7 @@ def normalize_audited_options
         audited_options[:on] = [:create, :update, :destroy] if audited_options[:on].empty?
         audited_options[:only] = Array.wrap(audited_options[:only]).map(&:to_s)
         audited_options[:except] = Array.wrap(audited_options[:except]).map(&:to_s)
+        audited_options[:max_audits] = Integer(audited_options[:max_audits]).abs if audited_options[:max_audits].present?
       end
     end
   end
diff --git a/spec/audited/auditor_spec.rb b/spec/audited/auditor_spec.rb
index 501a2211a..35e7c4024 100644
--- a/spec/audited/auditor_spec.rb
+++ b/spec/audited/auditor_spec.rb
@@ -329,32 +329,42 @@ def non_column_attr=(val)
     end
   end
 
-  describe "keep_audits" do
-    it "should be nil by default" do
-      expect(Models::ActiveRecord::User.keep_audits).to be_nil
+  describe "max_audits" do
+    it "should respect global setting" do
+      expect(Models::ActiveRecord::User.max_audits).to eq(10)
+    end
+
+    it "should respect per model setting" do
+      previous_max_audits = Models::ActiveRecord::User.max_audits
+      begin
+        Models::ActiveRecord::User.max_audits = 5
+        expect(Models::ActiveRecord::User.max_audits).to eq(5)
+      ensure
+        Models::ActiveRecord::User.max_audits = previous_max_audits
+      end
     end
 
     it "should delete old audits when keeped amount exceeded" do
-      previous_keep_audits = Models::ActiveRecord::User.keep_audits
+      previous_max_audits = Models::ActiveRecord::User.max_audits
       begin
-        Models::ActiveRecord::User.keep_audits = 2
+        Models::ActiveRecord::User.max_audits = 2
         user = create_versions(2)
         user.update(name: "John")
         expect(user.audits.pluck(:version)).to eq([2, 3])
       ensure
-        Models::ActiveRecord::User.keep_audits = previous_keep_audits
+        Models::ActiveRecord::User.max_audits = previous_max_audits
       end
     end
 
     it "should not delete old audits when keeped amount not exceeded" do
-      previous_keep_audits = Models::ActiveRecord::User.keep_audits
+      previous_max_audits = Models::ActiveRecord::User.max_audits
       begin
-        Models::ActiveRecord::User.keep_audits = 3
+        Models::ActiveRecord::User.max_audits = 3
         user = create_versions(2)
         user.update(name: "John")
         expect(user.audits.pluck(:version)).to eq([1, 2, 3])
       ensure
-        Models::ActiveRecord::User.keep_audits = previous_keep_audits
+        Models::ActiveRecord::User.max_audits = previous_max_audits
       end
     end
   end
diff --git a/spec/rails_app/config/initializers/audited.rb b/spec/rails_app/config/initializers/audited.rb
new file mode 100644
index 000000000..bd1743340
--- /dev/null
+++ b/spec/rails_app/config/initializers/audited.rb
@@ -0,0 +1,5 @@
+require 'audited'
+
+Audited.config do |config|
+  config.max_audits = 10
+end