When files are imported into the project, the original files remain wherever they are on your system and are copied to the project. Imported files are automatically converted to the project sample rate. Also, if the imported file is not already 32-bit float WAV, it is converted to 32-bit float WAV.

When files are converted on import, the original files remain wherever they are on your system. However, the project references the converted files, not the original files.