It pays to be alert for possible signs of breakdown or fraud in accounts payable. Accounting firm KPMG Peat Marwick looks for red flags such as --

significant and complex intergroup transactions

unusual bank arrangements

inconsistent and surprising cash-flow deficiencies

an understaffed, disorganized accounting department

a high volume of complaints from customers or suppliers

For more tips and information, order the free booklets The Fraud Awareness Guide and 1993 Fraud Survey Results from KPMG Peat Marwick by calling 212-872-5850.

* * *