An energy broker in the Philadelphia area approached me with a proposition. He wants to refer commercial clients to me for utility bill audits. In exchange, he doesn't want a referral fee — he wants me to include a recommendation in my audit report that the client switch their electricity supply to the broker's preferred REP. He said "just mention that they could save more by switching suppliers and give them my card." This feels wrong but I can't articulate exactly why. Am I overthinking it?
Broker offering kickback for favorable reports
You're not overthinking it — this is a clear conflict of interest. If you include a supply switching recommendation in your audit report because the broker asked you to, your report is no longer an independent analysis. It's a sales tool for the broker. Your credibility as an auditor depends entirely on the independence of your findings. The moment a client suspects your recommendations are influenced by third-party commissions, your reputation is done. Politely decline. If the broker wants to refer clients to you, accept a normal referral fee arrangement. But never let a third party influence the content of your audit report.
Randy is 100% right. Run from this. I had a similar situation in Atlanta and I said no. The broker got angry and said every other auditor he works with does it. Maybe they do. That's their problem. My reports are mine and nobody else's.
Hard agree with both of you. Your audit report is your professional reputation on paper. Guard it.
Thank you all. I knew it felt wrong and now I can articulate why. Declining today. Appreciate the gut check.