The main aim of this dissertation is to recognize the relationship between audit fees and audit risk in the selected North American Companies. The present research was motivated to evaluate the empirical results to identify the relationship of audit fees and audit risk, and its components. The research is conducted considering the determinants including company size, leverage, complexity of audit and inherent risk. All these factors are used to measure the audit risk. In this context, hypotheses are proposed that higher audit risk and its components lead to higher audit fees. It is also proposed that there is a noteworthy relationship between audit fees and non-audit fees. For this, 669 North American are companies are chosen initially out of which 259 are remained finally for the study after ignoring the companies that do not have the data which is required for the study. T-test and regression analysis are performed for each independent variable with dependent variable i.e. audit fees. The results disclose that there is a strong positive connection between audit fees and size of the company, complexity of audit, inherent risk and non-audit fees. It is found that there is no significant relationship statistically between audit fees and the leverage of company.