【正文】 prospectors are more likely to have flexible controls to enable quick adaptation to fast changing environments, while defenders are more likely to focus on reducing uncertainty and maximizing efficiency. Compared to defenders, prospectors are more flexible in modifying their management systems according to user needs. Based on the previous discussion the following research question is raised: 。 most control research has only focused on the differences between prospector and defender (Fisher 1995). Miles and Snow (1978) find that control systems of the prospector type may focus more on problem finding and that identifying flexible structures and processes may assist an anization in responding rapidly to environmental noted by LangfieldSmith (1997) control in prospector anizations may be decentralized and results oriented. This means that the prospector requires a strong control environment, which can ensure strong control consciousness. Further,Simons (1987) finds that the prospector emphasizes monitoring deviations from a budget through exception reports and monthly reports. A prospector needs a wide range of information related to the future during the search for market opportunities which may activate information and munication ponents. Simons (1987) concludes that differences in the attributes of formal control systems exist between defender and prospector anizations and that these attributes have significanteffects on pany performance. Based on prior management control studies (see LangfieldSmith 1997。 Drazin and Van de Ven 1985。 Macintosh 1994。 Donaldson 2020。 Gadh et al. 1993). Furthermore, the level of analysis in the firms is at the corporate control level as applied by the CEO and other corporate officers (see ., Fisher 1998). Contingency variables Previous studies (Fisher 1995。 Hooks et al. 1994。 Drazin and Van de Ven 1985。 Macintosh 1994。 Donaldson 2020。 Luft and Shields 2020). The contingency approach therefore offers an explanation for the variety of internal control systems found in practice. However, contingency theory constitutes a novel approach to studying internalcontrol and thus, theoretical fundamentals and chosen characteristics are derived from the contingencybased control literature. Consequently, management control is a major control subsystem in anizations which have been the subject of contingency theory research (Collier 2020). The research has mainly focused on the influence of contextual variables on management control system design (for example LangfieldSmith 1997。 Chenhall 2020。 Determinants and consequences of internal control in firms: a contingency theory based analysis Annukka Jokipii Published online: 8 March 2020 Springer Science+Business Media, LLC. 2020 Abstract In order to ensure the efficiency and effectiveness of activities, reliabilityof information and pliance with applicable laws, firms demand adequateinternal control. However, several frameworks (COSO, CoCo etc.) assume that theneed for internal control varies according to a firm’ s characteristics. This concurs with contingency theory, which claims that each anization has to choose the most suitable control system by taking into account contingency characteristics. This study examines which contingency characteristics firms choose to adapt their internal control structure and whether it results in a more favorable assessment of the effectiveness of control by the management. While the ponents of internal control have been examined individually in the control literature, this paper attempts to shed light on internal control and place it in a broader context. The results, derived from a webbased survey of 741 Finnish firms, indicate that firms adapt their internal control structure to deal with environmental uncertainty and to achieve observed control effectiveness. Also the strategy has statistically significant effects on internal control structure. Keywords Internal control Effectiveness Contingency theory Structural equation modeling 1 Introduction It is generally believed that an internal control system reduces risks and helps firms ensure the reliability of financial statements and pliance with laws and regulations (Spira and Page 2020). So, an increasing number of business failures and some widely publicized frauds have encouraged firms to put more emphasis on their internal control systems, which are specific to their particular operating environment. Management is under increased pressure to enhance the effectiveness of internal control and to effectively municate this to the board of directors and shareholders (Sutton 2020). Reference groups like aud