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Adding audio functionality

Hi, 

I have a preexisting device that I would like to add audio functionality to.  Essentially I would like to store an audio file (such as a MP3) on memory and be able to output the audio onto the preexisting audio output.  I am not sure what the best approach to accomplish this is.  My initial thoughts were using a discrete mp3 decoder to pcm and then to a DAC.  Would this be the best approach?

The existing device has a Microcontroller, EEPROM memory, SRAM, flash memory, and a few other things.  

Thank you for any help you may be able to offer.