  X-ray spectroscopy offers an opportunity to study the complex mixture of
emitting and absorbing components in the circumnuclear regions of active
galactic nuclei, and to learn about the accretion process that fuels AGN and
the feedback of material to their host galaxies. We describe the spectral
signatures that may be studied and review the X-ray spectra and spectral
variability of active galaxies, concentrating on progress from recent Chandra,
XMM-Newton and Suzaku data for local type 1 AGN. We describe the evidence for
absorption covering a wide range of column densities, ionization and dynamics,
and discuss the growing evidence for partial-covering absorption from data at
energies > 10 keV. Such absorption can also explain the observed X-ray spectral
curvature and variability in AGN at lower energies and is likely an important
factor in shaping the observed properties of this class of source.
Consideration of self-consistent models for local AGN indicates that X-ray
spectra likely comprise a combination of absorption and reflection effects from
material originating within a few light days of the black hole as well as on
larger scales. It is likely that AGN X-ray spectra may be strongly affected by
the presence of disk-wind outflows that are expected in systems with high
accretion rates, and we describe models that attempt to predict the effects of
radiative transfer through such winds, and discuss the prospects for new data
to test and address these ideas.
