The purpose of this research is to analyze the influence of local government characteristics and audit findings from BPK RI on mandatory disclosure level of local government financial statements (LGFS) in Indonesia. This research uses purposive sampling method. There are 88 LGFS of provincial governments in 2012-2014 in Indonesia are used as sample in this research. The characteristics of local governments in this research are wealth of the local government, size of the local government, independent ratio of LGFS, intergovernmental revenue and audit findings from BPK RI. Mandatory disclosure compliance is measured by 34 items based on government regulation No. 71 in 2010 about government accounting standart. It is included in statement of government accounting standard no 5 to 9. Based on the result of this research that average for mandatory disclosure of LGFS is 52,74%. There are 3 variabels show about they influence on mandatory disclosure level of LGFS. They are size of the local government, intergovernmental revenue and audit findings from BPK RI. The other variabels are wealth of the local government and independent ratio of LGFS have not influence on.