Info that some may find useful and to clear up any confusion:
The knock sensors are piezo elements tuned to a peak of 7 hertz since this frequency is typical of knock. At this frequency the sensor's output is at the highest level. The ecu judges the "strength" of the knock to be at one of three levels depending on the sensor's output voltage. It then retards the timing accordingly ie; if the knocking is strong it pulls a lot, if weak it pulls it a little. When the knocking ceases timing is advanced by fixed angles a little at a time, incrementally approaching a new calculated timing value for the current oparating conditions. If knock doesn't reoccur timing retruns to what it needs to be. If knock does reoccur the process is repeated.
As with all sensor inputs the KNKs signals are input to the ecu through a current limiting resistor. This is how the ecu monitors them. A short or open in the KNK signal while the engine is running under load (or at a high speed after a short time, about one or two minutes) results in a code 52 being set and the MIL being illuminated. At the same time the fail safe system sets ignition timing at a fixed retard angle to prevent engine damage, but no more than 10 degrees from calculated. (Calculated timing is initial timing + basic advance angle + corrected angle, either advanced or retarded).
In additon the ecu constantly monitors the sum of basic advance angle and corrective angles and prevents them from being greater or less than the following: a max advance of 35 to 45 degrees and a min advance of 0 degrees.
As an aside knocking is not the only event that causes correction angles. A high coolant temp signal, high altitude, cold idle, acceleration immediately following deceleration, AC on, and many other things all cause corrective angles to occur, either in retard or advance. In short the ESA system is pretty intelligent and always acting in subtle ways many times not felt by the driver.