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SIGNATURE EDWARD J. VEILLEUX
TITLE VICE PRESIDENT
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000933402
<NAME> FLAG INVESTORS EQUITY PARTNERS FUND
<S> <C>
<PERIOD-TYPE> YEAR
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<PERIOD-END> MAY-31-1996
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</TABLE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
Flag Investors Equity Partners Fund, Inc.
In planning and performing our audit of the financial
statements and financial highlights of the Flag Investors Equity Partners Fund,
Inc. for the year ended May 31, 1996, we considered its internal control
structure, including procedures for safeguarding securities, in order to
determine our auditing procedures for the purpose of expressing our opinion on
the financial statements and financial highlights and to comply with the
requirements of Form N-SAR, not to provide assurance on the internal control
structure.
The management of Flag Investors Equity Partners Fund, Inc. is
responsible for establishing and maintaining an internal control structure. In
fulfilling this responsibility, estimates and judgments by management are
required to assess the expected benefits and related costs of internal control
structure policies and procedures. Two of the objectives of an internal control
structure are to provide management with reasonable, but not absolute, assurance
that assets are safeguarded against loss from unauthorized use or disposition
and that transactions are executed in accordance with management's authorization
and recorded properly to permit preparation of financial statements in
conformity with generally accepted accounting principles.
Because of inherent limitations in any internal control
structure, errors or irregularities may occur and not be detected. Also,
projection of any evaluation of the structure to future periods is subject to
the risk that it may become inadequate because of changes in conditions or that
the effectiveness of the design and operation may deteriorate.
Our consideration of the internal control structure would not
necessarily disclose all matters in the internal control structure that might be
material weaknesses under standards established by the American Institute of
Certified Public Accountants. A material weakness is a condition in which the
design or operation of the specific internal control structure elements does not
reduce to a relatively low level the risk that errors or irregularities in
amounts that would be material in relation to the financial statements and
financial highlights being audited may occur and not be detected within a timely
period by employees in the normal course of performing their assigned functions.
However, we noted no matters involving the internal control structure, including
procedures for safeguarding securities, that we consider to be material
weaknesses, as defined above, as of May 31, 1996.
This report is intended solely for the information and use of
management and the Board of Directors of Flag Investors Equity Partners Fund,
Inc. and for the Securities and Exchange Commission.
COOPERS & LYBRAND L.L.P.
Philadelphia, Pennsylvania
June 28, 1996
