A question about DAC's

From what I have gathered, a DAC converts digital signals to analog signals to allow speakers to reproduce sound. If that is true, then I am assuming a MOBO has a built-in DAC or else no speakers/ headphones connected to the computer would produce sound. Is this correct? If so, then what is the big deal with external DACs? I cant imagine that the quality of the signal would vary enough to warrant  purchasing an external DAC.

Please share your knowledge.

There are a few reasons why you might want to buy an external dac. If you're a hardcore audiophile and want the very best sound possible, price be damned, then you might want one. For most users however, an external dac isn't really a must have purchase, unless your onboard audio is unusually poor quality due to a defect or poor design. (as is the case with my audio.)

From what I have gathered, a DAC converts digital signals to analog signals to allow speakers to reproduce sound.

Yes, this is what a Digital-to-analog converter dose 

If that is true, then I am assuming a MOBO has a built-in DAC or else no speakers/ headphones connected to the computer would produce sound. Is this correct?

Correct

If so, then what is the big deal with external DACs? I cant imagine that the quality of the signal would vary enough to warrant  purchasing an external DAC.

Dose your motherboard have on-board graphics too.....then why would you want dedicated graphics card? 

Dedicated hardware often preforms much better then the cheapest onboard option. 

In the case of a DAC there are many added advantages to a external unit, such as RF shielding.......but little point in having one if your putting in bad aduio, or playing it back on low impedance headphones or gaming headsets.  

Hm. I see your point. If I ever get around to buying some headphones that need a better signal (Superlux HD 668B's seem to work fine with what I have), Then I will either buy a DAC or build one. Thank you for your information.

Ah, mine seems to work out alright. Thank you for the short and simple response.