This research examined the effect of fair value hierarchy on audit fees and auditor industry specialization as a moderating variable by using a sample from banking sectors located in Indonesia, Malaysia, the Philippines, Singapore, and Thailand for 2013 to 2015. Empirical results show that auditors charge higher audit fees for auditing financial assets’ fair values that are relatively harder to verify, i.e., levels 2 and 3, rather than level 1. Auditor industry specialization was found to affect audit fees positively, consistent with differentiation strategy. Finally, auditor industry specialization weakens the positive effect of level 3 assets’ fair value on audit fees. © 2019 by Nova Science Publishers, Inc. All rights reserved.