What decodes HDMI audio output?

[Kriss Kulins]

Title explains it:
I have a laptop. Hooked up to this laptop is a Dell S2415 monitor via HDMI. I have chosen HDMI audio output as the primary output device. Is it still my sound card that is decoding the audio signal into analog signal, or is it something else (CPU, heck, maybe even monitor)?

I'm asking because, it almost feels like the sound is slightly better coming through the audio jack on my monitor, than my laptop.
Edit: listened to them back to back, and the quality is way better through my monitor's audio jack. It ain't placebo, trust me. I'm just curious at this point.

 

[kanewolf]

The audio on the HDMI is digital so the monitor has to be doing the D to A conversion since headphones are analog. It could be the amp in the monitor is better it could be the DtoA ...