Most modern audio signals are stored in digital form (for example MP3s and CDs) and in order to be heard through speakers they must be converted into an analog signal. DACs are therefore found in CD players, digital music players, and PC sound cards.
Specialist standalone DACs can also be found in high-end hi-fi systems. These normally take the digital output of a compatible CD player or dedicated transport (which is basically a CD player with no internal DAC) and convert the signal into an analog line-level output that can then be fed into an amplifier to drive speakers.
Similar digital-to-analog converters can be found in digital speakers such as USB speakers, and in sound cards.