how to read text files in file made in applescript - shell

Question

How would i read the text the user defined in pass.txt
This is What I have so far to test it you must make a folder on your desktop called test
but I bet most of you could have figured that out
set choice to the button returned of (display dialog "Login or Signup" buttons {"Quit", "Signup", "Login"} default button "Login")
if choice is "Signup" then
set username to the text returned of (display dialog "Enter Desired Username" default answer "")
do shell script "mkdir $HOME/Desktop/test/" & username
do shell script "echo " & username & " > ~/desktop/test/" & username & "/username.txt"
set pass to the text returned of (display dialog "Enter Password" default answer "")
set input to pass
do shell script "echo " & pass & " > ~/desktop/test/" & username & "/pass.txt"
else if choice is "Login" then
set username to the text returned of (display dialog "Enter Username" default answer "")
set y to username
set z to "pass.txt"
set x to "/Desktop/test/" & y
words of {(read (POSIX file x) & "/pass.txt") as «class utf8»} contains pass -- true
set pass to the text returned of (display dialog "Enter Password" default answer "")
else
return 0
end if

Answer 1

The brackets are not set correctly. Try this:
read POSIX file (x & "/pass.txt")
or
do shell script "cat " & quoted form of (POSIX path of (path to desktop) & "test/" & username & "/pass.txt")
There are many other issues in the script anyway. Just a few tips, use...
-quoted form of pathes
-the -p option for mkdir
-the with hidden answer option for password entry