In a currently functioning (uniformly quantised and sampled) digital audio system the only observable signal impairments should be attributable to band-limitation and an additive noise residue. Thus although the subjective sound quality of digital audio has received some criticism since the launch of the compact disk (CD) medium 10 years ago, there can be little doubt that the theoretical performance obtainable from the 16 bit linear PCM format sampled at 44.1kHz is superb compared to any analog source available to the customer. When correctly dithered using triangular PDF dither, a 16bit digital audio signal possesses a dynamic range of 93.3dB with zero distortion and zero noise modulation. Indeed, the 16bit format holds the possibility of even higher subjective dynamic range when minimally audible noise shaping is employed at the mastering stage of the CD manufacturing process…

Is The AESEBU / SPDIF Digital Audio Interface Flawed? – >>>[LINK]<<<