Readability of auditor reports: does audit market competition matter? Empirical evidence from Iran

Purpose While existing research explores the impact of audit market competition on fees and quality, there is limited investigation into how in influences auditors' writing style. This study examines relationship between readability reports Iran, where particularly intense, especially among private firms. Design/methodology/approach The sample comprises 1,050 firm-year observations Iran from 2012 to 2018. Readability measures, including Fog index, Flesch-Reading-Ease ( FRE ) Simple Measure Gobbledygook SMOG ), are employed assess reports. Herfindahl–Hirschman Index (HHI) utilized measure competition, with lower index values indicating higher auditor competition. concentration multiplied by −1 obtain AudComp ). Alternative such as Flesch–Kincaid FK Automated ARI used additional robustness tests. Data textual features reports, characteristics other control variables manually collected annual firms listed Tehran Stock Exchange (TSE). Findings regression analysis results indicate a significant positive association report readability. Furthermore, stronger observed firms, more intense compared state These findings remain robust when using alternative measures sensitivity checks. Additional reveals that effect pronounced situations remains unchanged size small. Originality/value paper expands literature examining It focuses unique (Iran), than developed countries due liberalization Iranian 2001 establishment numerous