This paper examines whether firms manipulating their reported financial when facing high environmental uncertainty. Results show that a complex and dynamic environment weakens financial reporting quality. More specifically, the negative association between financial reporting quality and environment uncertainty is weakened for diversified firms, insufficient of using technology for business operation, and those facing high market competition for firms in the same industry. We examine sample of public firms in Indonesia during the 2013-2014 period with Generalized Least Square methods. In this paper, we also develop Environmental Uncertainty Index to consider the complex and dynamic environment with factor analysis. Overall, our findings suggest managers use dicretionary accruals to reduce the variability in reported earnings when firms operate in high environmental business uncertainty.