An improved handheld electronic device and camera apparatus upon which can be executed an improved method enable a modular camera to be used in conjunction with a flash. In one implementation, compensation parameters that are intended for use in a non-flash situation are overwritten with compensation parameters that are configured to compensate for the combined effects of the camera and the flash and are used by an embedded compensation routine executed on the camera. In another implementation, an image signal is processed by the embedded compensation routine using the original compensation parameters, but if it is determined that the image signal is a flash image signal, the image signal is further processed by the embedded compensation routine employing an additional set of parameters which compensate the image signal for the effect of the flash.