Introduction Organizations have been trying to create ethical environments by implementing a number of initiatives, including codes of conduct, ethical awareness training programmes and ethics offices. However, if organisations want to truly create environments that foster ethical decisions, we must understand how those associated with accounting system perceive their work environment as well as the factors that affect these perceptions. It is believed that the atmosphere in which employees carry out their responsibilities influences whether employees will behave ethically. The integrity and ethical values of managers are the foundations for internal control, a process to provide reasonable assurance regarding the effectiveness and efficiency of operations; reliability / of financial reporting; and compliance with laws and regulations as indicated by the Committee of Sponsoring Organizations of Treadway Commission (COSO, 1992).