This study was conducted to examine the effect of Full Disclosure Policy (FDP) compliance on financial performance as moderated by audit opinion. The sample of the study was the twelve (12) city and municipal Local Government Units (LGUs) in the Province of Bataan within two years’ time or fiscal year 2018-2019. Descriptive research design was utilized. The researchers used secondary data, particularly the Statement of Receipts and Expenditure (SRE) and Auditor’s Reports of selected local governments. The data were analyzed with SPSS results using multiple linear regression analysis. Disclosure compliance was measured through the availability of fourteen (14) financial documents queried at the FDP portal, while financial performance was measured by the computation of ten (10) financial indicator ratios using the formula extracted from SRE manual published by Bureau of Local Government Finance (BLGF). Audit opinion was used as a moderating variable and it was measured using proxy for each type of opinion. The findings of the study revealed that FDP compliance has no significant effect on financial performance. Moderation analysis also showed the absence of correlation between the variables examined. Hence, audit opinion has no moderating effect on disclosure compliance and financial performance. The outcome of the study is beneficial not only to LGUs but also to agencies and attached bureau for local governments to use as a guide for material considerations in determining future initiatives to improve the policy on government financial reports. This study is also useful for citizens and interest groups to have an idea as to the control efficiency and fiscal discipline of LGUs towards the provision of public services. Lastly, the result may provide empirical evidence for conducting further studies and it can develop existing accounting literature to strengthen the research related to the possible effects of the level of disclosure compliance and influencing factors of financial performances.