Purpose: The present study seeks to trace the effect of auditor conservatism on the relationship between the readability of financial information and incorrect pricing of companies' shares.

Method: In this regard, a sample consisting of 127 companies listed in the Tehran Stock Exchange during the years 2012-2021 was selected and finally the research hypotheses were tested with the help of multiple linear regression and test based on panel data (since the data 2021 years were used in the calculations of incorrect stock pricing, finally 9 periods were used in the statistical tests). To measure stock incorrect pricing the 5-factor model of Pantzalis and Park (2013) and to evaluate the readability of financial reporting the Fog index and finally to measure the auditor's conservatism the Chong et al. model (2003), which is an extension of Basu's conservatism model(1997) was used resistively.

Findings: It was observed that there is an inverse and significant relationship between the readability of financial reporting and incorrect pricing of stocks, and the auditor's conservatism strengthens the relationship between the readability of financial reporting and incorrect stock pricing.

Conclusion: The current research provided useful evidence that with better use of the readability of financial information, it is possible to reduce the incorrect pricing of stocks, and the auditor community plays an important role in this regard.