How does the traffic sign recognition feature work in the Audi A3?

I've heard that the Audi A3 comes with a traffic sign recognition feature. How does this feature work and what type of signs can it recognize?

The traffic sign recognition feature uses a camera to scan for road signs and displays them on the driver's information system. It can recognize speed limits, no entry signs, and stop signs.

The Audi A3's traffic sign recognition feature is able to recognize both fixed and temporary signs. This includes construction signs and detour signs.

I've personally found the traffic sign recognition feature to be very accurate and helpful. It even recognizes signs in low light conditions.