What it is
A flux analysis is only finished when every large movement has an explanation someone has checked. This tracker takes current and prior amounts for each line, flags the lines that exceed your thresholds and holds the explanation, the evidence reference and the status for each one.
The Summary tab counts flagged lines that still have no explanation or no corroboration and reads OK only when none remain. Use it at month-end close, at year-end, and as the client’s support for analytical procedures during an audit.
When to use it
- At month-end and year-end close, to document why each large line moved.
- Before an audit, to hand the auditor explanations with evidence.
- In review engagements, to support analytical procedures and management inquiries.
What’s inside
- Thresholds tab with dollar and percent tests and a rule to combine them
- Income statement and balance sheet tabs with 40 lines each
- Automatic flag, new-item detection and an attention column
- Explanation, evidence reference, preparer and status columns
- Summary of flagged, unexplained and corroboration-pending lines
Standard cited
This template follows Flux analysis / 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
How do I choose thresholds?
Tie them to materiality or to the size of the statement, and set a lower dollar threshold for lines you watch closely. The workbook leaves them blank so you set them deliberately; a blank threshold never flags.
What counts as a good explanation?
It names the driver, quantifies the part of the movement the driver explains, and says who confirmed it. “Higher activity” is not an explanation. “New customer contract added $X of monthly billing from March, confirmed to the signed contract” is.
What is the difference between Explained and Corroborated?
Explained means management gave a reason. Corroborated means the reason was checked to evidence such as a contract, invoice or schedule. The Summary counts Explained lines as pending corroboration.
Related templates
- Flux Analysis Template (AU-C 520)
- Preliminary Analytical Procedures Workpaper (Risk Assessment)
- Analytical Procedures Expectation Workpaper (AU-C 520)
- Month-End Close Checklist (Excel)
Last updated 11/05/2026. All free templates.