The purpose of the study was to investigate the influence that corporate governance has quality of financial statement, in Case of Commercial Bank of Ethiopia. The study was guided by specifically, focus on the board's independence, board's transparency, audit committee, board's diversity and board's expertise the primary data involved use of questionnaire, and interviews. Secondary data used publication and banks records. This study consists a total sample size of 92 respondents were assigned in different organs of the Head Office, were involved in the study. The research design used for this study was a cross-sectional research design. Among non-random sampling techniques, the study used judgmental techniques. SPSS and Stata computer programme was used to analyze data that was collected through questionnaires and the qualitative data were analyzed using explanation. Descriptive analysis techniques were used to produce frequencies, descriptive and inferential statistics. Specifically, ordinal regression modelling was used. The findings indicated there was an overall goodness of fit. An Analysis of Variance (Chi-square) results indicated that the overall model was significant. Ordinary Regression results indicate that there is a positive relationship between Quality of Financial Statement and Corporate Governance. Overall results indicate that a unit change in board’s independence, board's transparency, and board's expertise audit committee led to a positive change in Quality of Financial Statement the other negative. The study thus concludes that the effect of corporate governance on Quality of Financial Statement depends on the variables. The study recommends that the National Bank of Ethiopia should encourage banks to implement good corporate governance practices through enacting rules and regulations.