After reading some posts I found some users got a solution resetting their iPads,
I did try resetting mine twice with no luck at all. Then, I closed all open applications (double click home button) and did a reset again. Now my audio works perfectly.
Hope this helps other users having the same problem.
BTW, I have iPad 3 Retina.
After having the same problem, I did exactly this and it is now fixed. Thanks!
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