This study aims to determine how the relationship between the independent variables, namely corporate governance proxied by managerial ownership, ownership, independent board of commissioners, audit committee, and board of directors based on ASET, BOPO, CAR, and DPK. This study uses a sample of Indonesian Islamic Banks, ASET, BOPO, CAR, and DPK used, namely the last 4 years (2018-2021) in Indonesia, while the data used is secondary data taken from the official government website of the central statistics agency (BPS), annual financial reports collected from BSI (Bank Syariah Indonesia), processed using the reviews application. The data carried out several data analysis tests including a correlation test and a granger causality test. The results of this study are in the correlation coefficient table, ASET has a very weak correlation with CAR and DPK, while BOPO has a perfect negative correlation with AET, CAR, and DPK, CAR has a moderate correlation with DPK, and DPK has a very weak correlation with ASET. Meanwhile, in the granger causality test table BOPO has no significant effect on ASET in Islamic banks in Indonesia, and vice versa, ASET has no significant effect on BOPO. CAR has no significant effect on assets and vice versa, assets have no significant effect on CAR. DPK has no significant effect on assets, and vice versa, assets have no significant effect on DPK. DPK has no significant effect on BOPO and vice versa BOPO has no significant effect on DPK.

Small-medium enterprises have an important role in Indonesia economy, especially in Batam City. There are few problems in these enterprise, especially in the management of financial statements. This is due to the low level of education and the lack of perceptions of small-medium enterprises. In terms of management of financial statements, the government has issued SAK ETAP (Financial Accounting Standards Entity Without Public Accountanbility) to facilitate small-medium enterprises in managing financial statements. This research is done with the aim to know the influence of education level and perception of small- medium enterprises to the use of SAK ETAP SMEs in Batam City. Data collection techniques with questionnaires distributed to 300 respondent who are samples in this study. Respondent in this study are the small-medium enterprises located in  Batam City. Data analysis using multiple linear regression analysis with  SPSS version 21 software. The coefficient of determination value of this research is  3,6%. The result of t test is that the variable of education level have affect to the use of SAK ETAP equal to 0,003 less than 0,05 and t value 3,000 bigger than t value table 1,9679. While the perception variable does not affect the use of SAK ETAP because 0,219 is greater than 0,05 and the value of t arithmetic 1,231 is smaller than t value table 1,9679. The result of F-test show that the level of education and perception together have affect on the use of SAK ETAP of 0,004 is smaller than 0,05 and the value of F arithmetic 5,522 is greater than F table 3,0258. Key word: Small Medium Enterprises (SME), Education Level, Perception, use of SAK ETAP