In each episode of our Year-end toolkit series, our guests discuss key areas of the year-end reporting process – from closing the books to finalizing reports.In this episode, PwC’s US Trust Solutions Quality Management leader, Michael Mullen, joins us to share his expertise managing materiality judgments and to provide insights into recent SEC activity related to materiality. In this episode, you’ll hear discussion of:1:45 - The principle and purpose of the SEC staff’s accounting bulletin on materiality (SAB 99) 5:13 - Recent SEC statements on materiality and the importance of an objective, unbiased assessment10:04 - The need for a thoughtful and documented assessment of materiality before identifying an error15:54 - The impact of the current macroeconomic environment on the assessment of fraud risk by management and auditors 23:44 - SEC enforcement actions and expected impact of the SEC’s new compensation clawback rules31:51 - Final advice and reminders for year-end materiality assessmentsCheck out other episodes of our Year-end toolkit series, available in our library. And listen to another podcast with Michael that takes a deeper dive on the process of making materiality assessments. Michael Mullen is PwC’s US Trust Solutions Quality Management leader. In this role, he oversees complex client issues, providing technical insights and expertise in support of overall quality. With over 30 years of client service experience, Michael has led numerous global client engagements.Heather Horn is PwC’s National Office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series. With over 30 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.