Based on behavioral finance theory and audit risk theory, this paper makes an empirical examination on the effect of management overconfidence on audit pricing decisions and its mechanism. The study finds that if there is management overconfidence, the auditors may significantly increase audit fees, in order to cope with possible audit risk. This effect especially exists in the state-owned enterprises. Further study finds that overconfidence in management reduces the quality of accounting information and increases the corporate risk. Therefore, in order to avoid the possible audit risk, auditors increase the risk premium while increasing the audit workload, and then increase the audit fees. This paper extends the economic consequences of management overconfidence to other stakeholders, which not only helps to deepen the understanding of the influencing factors of audit pricing, but also has some policy implications on how to improve the supervision of the management.