Previous research on Central and Eastern European countries showed that the lower is corporate governance quality the better is the firm’s financial performance. One of the explanations for this phenomenon is that weak corporate governance is associated with the low earnings quality, which the present study looks into. The analysis, which was made on 118 companies quoted on Central and Eastern European stock exchanges, shows a prove to the negative relationship between the quality corporate governance and the level of accruals. The statistically significant results are based on the cash flow accruals, while balance sheet accruals, though showing a consistent pattern, do not provide significant evidence. Net income and operating cash flow discrepancy also detect lower than average earnings quality if a company has weak corporate governance system, while sufficiently good earnings plausibility in case of the well-managed companies.