Document Type : Original Article
Abstract
One of the effects of the improvement in financial information disclosure systems in the capital markets is that the information disclosed in the annual reports includes many specialized terms and special notes as well as non-financial information, which has made them more complicated and incomprehensible. In this regard, the length of financial and audit reports has been increasing, and in this sense, the readability of these reports has emerged as a difficult problem, especially in today's era, we are facing an information explosion; Therefore, the economic effects of the readability of financial and audit reports have attracted the attention of legislators and researchers alike. Therefore, the purpose of this research is to develop a model of factors that positively influence the readability of the auditor's report in Iran. The investigated mechanisms include the risk management committee, political communication, and institutional shareholders, and the fog index was also used to measure the readability of the auditor's report. The statistical population of the research, after applying the desired restrictions, the number (1030 observation year-company) was selected in the time period of 2011 to 2020. The results of the research showed that the first and third dimensions (risk management committee and institutional shareholders) are effective in the readability of the auditor's report. These findings have important perspectives for various stakeholders such as the government, legislative and regulatory bodies, companies, and researchers. Based on this, it is suggested to the audit organization and the Tehran Stock Exchange Organization take the necessary measures regarding the formulation of rules and standards for the readability of audit and financial reports.
)