Monthly Close Evidence Index: Make Every Balance Reviewable

A close checklist shows whether someone marked a task complete. An evidence index shows what supports the result. It links each material account and close control to the reconciliation, source records, adjustment, preparer, reviewer and unresolved exception used for management reporting.

Define the index before the close List bank, card, receivable, payable, inventory, payroll, tax, fixed asset, accrual, prepayment, intercompany and equity controls relevant to each legal entity. Assign preparers and reviewers and set the evidence standard before deadlines arrive.

Link evidence rather than duplicating it Use controlled links to the final reconciliation and support. Record the period, entity, account, owner, reviewer, status and completion time. Avoid copying sensitive files into multiple folders where access and version control become unclear.

Keep open exceptions visible A balance can be provisionally closed while an exception remains open if management understands the limitation and approves the treatment. Record the amount, cause, risk, temporary treatment, owner and target date. Do not delete an exception because the reporting deadline passed.

Control journals and estimates Link each material manual journal to its calculation, source evidence, account rationale and approval. For estimates, document the method, assumptions, sensitivity and later true-up. Repeated late journals should trigger a root-cause review.

Use the index in management review Summarise completion, overdue controls, unresolved values and repeated issues. The purpose is not to create more paperwork. It is to let management distinguish a clean close from a close completed with significant limitations.

Professional boundary The exact close and retention framework depends on the entity, reporting basis, tax position, systems and engagement scope. The index supports governance but does not provide audit assurance.