Usage – Can ‘I Am Sorry’ Be Used When Something Can’t Be Heard?

It's fine as a response to an apology. However you should be careful not to use it if the accident is your fault (even if they apologize first) since, "It's all right," implies that you forgive the other person.

Other responses:

Think nothing of it.

Don't worry about it.

It's ok.

It's quite all right.

Also, there's an Australian expression, "No worries!" which I like to use even though I'm American.

Edit. Please review the comments, as there are many regional differences in the nuance of these expressions.

You can say

He is too good of a person to have done something like that. Are you sure it was him?

He is too good a person to have done something like that. Are you sure it was him?

I hear too good of a {something} a lot (Central Atlantic American English).

It's too good of a deal to pass up.

But I haven't heard this construction used with a plural and without the singular indefinite article a.

They are too good of a team. We don't stand a chance.^YES

They are too good of athletes. We don't stand a chance. ^NO

He is too good of an athlete. I don't stand a chance.^YES