Abstract: Based on the samples of China’s A-share listed companies from 2007 to 2016, this paper constructs an agent cost intermediary effect model to study the impact of economic policy uncertainty on audit fees. The findings show that economic policy uncertainty will increase audit fees, while the agency cost is the intermediate variable between economic policy uncertainty and audit fees. Further research has found that enterprise risk-taking ability can regulate the intermediary effect of agency costs. Large-scale enterprises, state-owned enterprises and lower-growth enterprises are less affected by the intermediary effect of agency costs.

Key words: economic policy uncertainty; audit fees; agency costs; mediating effects