The Impact of Financial Performance Indicators and Audit Implications on Readability Financial Reports in Companies Listed in the Iranian Capital Market

.Managers and auditors in the performance and audit process in recent years pay special attention to the way information is presented and the readability of financial reporting and try to manage it. Managers using the hypothesis of management ambiguity seek to obscure and to conceal information through complicating and less transparency in financial reporting. On the other hand, auditors also assess the risk of audit contracts with employers. This study aims to investigate the performance indicators and audit implications on the Linguistic Complexity of Financial Information Disclosure based on Readability in companies listed on the Tehran Stock Exchange. In this study, the return on assets as a performance indicator and the delay of the audit report and changes of the auditor as audit outcomes and to measure readability, the Fog index has been used. Data of 152 companies were analyzed by elimination sampling method for the period 2010 to 2020. The research method is regression analysis and data panel and GMM approach has been used to test the research models. The results of testing the hypotheses show that the return on assets have a negative and significant effect on the readability of financial statements. In addition, the delay of the auditorchrchr('39')s report has a positive effect on the readability and the auditorchrchr('39')s changes have a negative and significant effect on the readability of the auditorchrchr('39')s report.