In ARM architecture, after an instruction executes, special flags are updated to reflect the result. These flags include Negative (N), Zero (Z), Carry (C), and Overflow (V). Conditional branch instructions check these flags to decide whether to jump to another part of the program or continue in order. For example, the BEQ instruction checks if the zero flag Z is set to 1, meaning the previous comparison found equality. If true, the program jumps to the specified label; if false, it continues with the next instruction. This visual trace shows a CMP comparing R0 to zero, setting flags accordingly, and then a BEQ that branches if equal. The variable tracker shows how R1 is set only after the branch. Understanding how flags control branching is key to reading ARM assembly flow.