That an action is “idempotent” means if you do it several times, the effect is the same as if you do only once.
Lossy audio compression by definition loses information. Even if you convert it back to a WAV file, there will be differences from the original. However, what if you convert a WAV to MP3 and back, and then repeat the process many times, does the audio quality keep degrading before reaching some stable point, or does it not degrade further as MP3 is theoretically already able to hold that much information?
I guess the situations might be different for different formats and different encoders, so it may be a broad question.