A Nexus 5 running on Android L is working with an AudioQuest DragronFly USB DAC/amp:
Nexus 5 running on Android L > USB audio out >> USB OTG cable (i.e. ID pin grounded) >> DragonFly USB DAC/amp >> headphones
Android phones and USB DACs - Page 335
A Nexus 7 running on Android L can work with a FiiO E17 USB DAC/amp:
Nexus 5 running on Android L > USB audio out >> USB OTG cable (i.e. ID pin grounded) >> FiiO E17 USB DAC/amp >> headphones
Nexus 7 (2013)
The USB audio feature of Android L seems able to drive the FiiO E17.
I am wondering if your USB OTG cable or your USB OTG adapter cable is functional:
Nexus 5 running on Android L >> USB OTG cable >> FiiO E17 >> headphones
Nexus 5 running on Android L >> USB OTG adapter cable + regular USB cable provided by FiiO >> FiiO E17 >> headphones
Android USB audio - FAQ:
Android phones and USB DACs - Page 335
"
I have an Android device, a USB DAC and a USB OTG cable which are reportedly compatible, but I have not been able to make it work.
Is there a trick to make it work?
Some component of the setup is not functional.
Each component should be separately tested:
. Test the USB DAC with a PC or a Mac:
PC >> regular USB cable provided by the USB DAC maker >> USB DAC >> amp >> headphones
. Test the Android device with a USB OTG adapter cable and a simpler USB peripheral like a USB mouse or a USB keyboard:
Android device >> USB OTG adapter cable >> USB mouse
. Test the setup with a USB OTG adapter cable:
Android device >> USB OTG adapter cable + regular USB cable >> USB DAC >> amp >> headphones
If the tests are successful, apparently the USB OTG cable is not functional (i.e. pin 4 is not probably well connected to pin 5), then fix the USB OTG cable or buy a new one."