Is it possible to make a USB Speaker with an arduino? If so, what Arduino and parts would I need to make it work? Please note that I am a beginner.
If you want to make a USB speaker, I suggest buying a USB soundcard, and then building an amplifier and install it all in a speaker box with a speaker.
With the Arduino, you'd have to write the firmware to make the Arduino "look like" a USB soundcard to the driver, and you'd have to make it communicate with the driver protocol. That's some serious programming...
Then, you'd need to add a DAC and an amplifier. You'd probably end-up spending more than $50 on hardware before you add the speaker and the box/enclosure.
You could buy a USB soundcard chip. These already have the frimware that works with the standard drivers, but by the time you make a PC board and add the support components it wouldn't be worth the cost or the effort compared to buying a USB soundcard.