Squeezebox query

One day I visited my freind's CAS setup

Config
*********************************************************
NAS + Squeezebox(digitial coaxial output) + Lavry DAC
remote control by squeezebox server software.
*********************************************************

I am very surprised that the volume contol still working through the
sqeeezebox server software (+/- volume) under above config!?

In theory, digital signal in squeezebox CANNOT be weaken by VR control
trammitting through digital coaxial cable. But in my friend's case, the
sqeezebox server software could still control the (+/-) volume.

Can any person explain?
Thank you


-- 
bh2007
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