Final answer:
It is true that the liquidity detail report allows auditing of cash and short-term investments back to the source filings, enabling verification of financial figures and assessment of a company's liquidity position.
Step-by-step explanation:
The statement is true. In the liquidity detail report, you can indeed audit the cash and short-term investments value back to the source filings. When reviewing a company's financials, the liquidity detail report provides a snapshot of the company's liquid assets, which generally includes cash on hand and any investments that can easily be converted into cash within a short period, typically less than one year.
To ensure the accuracy of this report, you can cross-reference the reported values with the corresponding entries in the company's balance sheets, cash flow statements, and any additional notes included in the company's official financial filings with regulatory bodies like the Securities and Exchange Commission (SEC), which may include forms such as 10-K or 10-Q. Doing this cross-referencing allows auditors and analysts to verify the reported figures and assess the company's short-term financial health and liquidity position.