There is a 'stereo direct' mode on the B&K202 - you must select this mode if you want to use your CD player's DAC. Otherwise, all signals (ie. digital and analog) will be processed by the B&K's DSP's.
In the case of an analog connection, the signal is passed through the A to D converter AND then to the receiver's D to A converter. In other words, using analog cables does not automatically mean that you're bypassing the receiver's DAC's UNLESS you select the 'stereo direct' mode. At least, this is my understanding. Note that the 'stereo direct' mode disables bass management so if you have a subwoofer hooked up, you won't be able to use it in this mode.
In the case of an analog connection, the signal is passed through the A to D converter AND then to the receiver's D to A converter. In other words, using analog cables does not automatically mean that you're bypassing the receiver's DAC's UNLESS you select the 'stereo direct' mode. At least, this is my understanding. Note that the 'stereo direct' mode disables bass management so if you have a subwoofer hooked up, you won't be able to use it in this mode.