The purpose of this study was to determine the effect of accountability, transparency, understanding of government accounting standards, and internal control system on the quality of local government financial statements Kendal District. The method used in sample section was by purposive sampling method. Based on the analysis result, only understanding of government accounting standards have positive effect on the quality of local government financial statements in Kendal District. While accountability, transparency, and internal control system has no effects on the quality of local government financial stantements in Kendal District