Before getting involved in cable adjustment which is always the very last thing you adjust anyway, i'd remove the rear pads and examine them and the discs, they might be the problem themselves or their might be problem with the caliper self adjusters.
Pads can look fine and appear to have ample material, but they can be in poor condition once looked at properly, this modern method of servicing where a techie peers through or from behind a wheel at the calipers and a quarter inch of side view of pads then pronounces all is well and squirts brake cleaner liberally about is rubbish.
Handbrake cable adjuster is possibly on the cable just behind the handrake lever, or might be inside the lever if you stand on your head with a torch and look, or it might be underneath where the cable splits into two.
Last edited by: gordonbennet on Fri 12 Jul 13 at 10:21
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Toyota Auris - 07 1.6 Handbrake adjus.. new