This study examines the impact of corporate transitional climate risk on audit fees charged by auditors. Using an international sample of firms in 24 countries from 2011–2019, we find that firms with greater transitional climate risk are charged higher audit fees. This finding is robust when we address endogeneity issues, use alternative measures of climate risk, and use alternative model specifications. Cross-sectional analyses show that the country’s institutions, such as environmental/climate change performance, the stringency of climate regulations, stakeholder orientation, regulatory governance and law enforcement, and national culture, play a significant role in moderating the relationship. Finally, we show that firms with higher transitional climate risk tend to have poor information quality, more volatile earnings and incur greater litigation expenses, suggesting that business and reporting risk are two potential channels. Our results have policy implications relevant to auditors and auditing standard setters.