This paper investigates auditors’ responses to annual report readability. Using unique audit fee and hour data for Korean listed companies, we find that hard-to-read annual reports are positively associated with audit fees and audit hours. However, we fail to establish the empirical association between annual report readability and hourly fee rates. The findings imply that auditors exert more efforts to process less readable annual reports but do not perceive it as an additional risk factor in audit pricing. We further document that the association between annual report readability and audit variables is most salient at the initial engagement but becomes weaker as auditor tenure increases. In sum, this paper sheds light on the literature on auditors’ processing costs of annual reports.