Referral fee

A referral fee is a payment made to a third party in exchange for recommending the payer’s services or sending customers to it. For example, this fee is paid when an auditor recommends another party to a client for various services, such as tax or legal work, and the referred party pays the auditor a fee in exchange for the introduction.

The various codes of conduct provide mixed opinions on this matter; the minimum requirement is that these fees be disclosed to the client, while some state boards of accountancy mandate that referral fees cannot be accepted at all.

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