What it is
A flux analysis compares each balance or line with a comparative and explains the movements that matter. This workbook sets the dollar and percent thresholds once, flags every line that crosses them and gives each flagged line a place for the expectation, the explanation, the evidence behind it and a status. Unexplained flagged lines are counted at the bottom, so a reviewer can see at a glance whether the analysis is finished.
It serves an auditor documenting substantive analytical procedures, a preparer or controller reviewing the close, and a reviewer who needs to see what was explained and how. AU-C 520 expects an auditor to form an expectation, define the difference that can be accepted without further investigation and compare the two; columns G to I carry that expectation. Comparing against the prior period alone is a screen, and the template says so in its notes.
When to use it
- Interim or year-end analytical procedures on a lead schedule or trial balance.
- Month-end or quarter-end close review where management wants each large movement explained and supported.
- Review engagements and compilations where you document the inquiries behind unusual changes.
What’s inside
- Settings: dollar threshold, percent threshold and whether a line must exceed both or either
- Flux sheet: current, comparative, change in dollars and percent, flag and absolute change
- Expectation, expected amount and difference from the expectation for each line
- Explanation, corroboration reference and status, with open items counted automatically
- Tie-out of total changes to the change in totals, and share of total movement covered by flagged lines
Standard cited
This template follows AU-C 520. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use. See AU-C 520 explained.
Questions
What does AU-C 520 require for a substantive analytical procedure?
The auditor determines that the procedure suits the assertion, evaluates the reliability of the data, develops an expectation precise enough to identify a misstatement, and defines the difference from the expectation that can be accepted without further investigation (AU-C 520.05). Differences beyond that amount are investigated. The expectation columns in this workbook support the third and fourth steps.
How do I choose the thresholds?
For an audit, tie them to overall and performance materiality and to the risk of the account. For a close review, use the level your reporting policy sets. The values in the workbook are examples. Lowering them flags more lines; raising them risks missing a movement that matters in a sensitive account.
Is a management explanation enough?
Not for an audit. An explanation is corroborated with evidence such as invoices, contracts, subsequent receipts or data from outside the entity. The status stays Open until the line is both explained and corroborated, and the evidence reference goes in column K.
What happens when the comparative is zero?
The percent change shows 100% when the comparative is zero and the current amount is not, so the line is still tested on the dollar threshold and flagged if it crosses it.
Related templates
- Analytical Procedures Expectation Workpaper (AU-C 520)
- Review Engagement Analytics and Inquiry Workpaper (AR-C 90)
- Lead Schedule Template (Excel)
- Trial Balance Template with Mapping (Excel)
Last updated 11/05/2026. All free templates.