The affected cars have model years from 2012 to 2017 and feature the brand's 4.0-litre TFSI V8 engine.
The recall notice, which was lodged with the Australian Competition and Consumer Commission, states that the cars' "engine bay seal may become warped and come loose".
"If this occurs, engine vibrations may result in the seal making contact with hot components in the engine bay," the notice explains.
"If the engine bay seal makes contact with hot components, there is a risk of it or other components scorching. This may result in a fire or smoking from the engine bay, which may cause an injury."
Audi said it is contacting all known owners of the affected cars, but owners are also encouraged to contact their nearest Audi dealer to arrange free inspection and repair.
To see a full list of all the vehicle identification numbers (VIN) of the affected cars, click here.
CarAdvice has contacted Audi Australia to see if there have been any known incidents related to this fault in Australia, and will update this story with a response.