After the Sarbanes–Oxley Act was passed in the year 2002, many firms were forced to review their internal controls for Accounts Payable. Although implementation of effective internal controls could be a tedious job, it could prove to be extremely beneficial in preventing frauds. One of the most common ways in which a company can encounter significant financial losses is Accounts Payable fraud. It’s often perpetrated by the employees of the organization and could go undetected for a long period of time leading to major losses. The signs for such frauds cannot be always easily observed. But fortunately, there are effective strategiesto detect and prevent accounts payable frauds. However, once you detect the crime, it’s quite easy to identify the offender as there are always paper trails leading to the perpetrator.