First of all, thanks a lot for your reply.

Yes, that there's no D/A and A/D conversion is clear. My question is
rather regarding the transcoding.

The native capabilities of the Touch and those of the DAC obviously need
not be the same. So, the Touch could play files natively the DAC cannot
and/or vice versa. If Touch and DAC can handle a file, the Touch could
pass on that data 1:1 via TOSLINK to the DAC. Does it do it?

However what happens, if the DAC cannot play a certain file type the
Touch can (e.g. Ogg Vorbis)? Will the Touch just stream it and the DAC
plays silence?

And vice versa, the Touch can play up to 24bit/96KHz ... what if I
stream a 24bit/192KHz file to the Touch and the DAC could handle it?
Will the Touch just pass it on bit-by-bit or will it refuse to play it
(or transcode it to 24bit/96KHz)?


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