In this study the author tried to look at 2 variable that affect the quality of financial statements. The first variable is the application of SAK-ETAP and the second variable is the competence of accounting employees The object of this study is the accounting employees of PT XYZ who are also a sample. Multiple linear regression is used to analyze research results and the processing of research data with SPSS 22. Partially, the results of this study are the application of SAK-ETAP had no effect on the quality of financial statements, while the competence of accounting employees had an effect on the quality of financial statements.