Developing a technology-driven simulation model for integrating finance, auditing, accounting, and taxation in emerging economies

Abstract

Finance, taxation, auditing, and accounting often operate in institutional silos, despite their interdependence in ensuring governance and economic efficiency, particularly in emerging economies such as India. Although digitization initiatives and regulatory reforms have progressed, comprehensive frameworks that technologically and regulatorily integrate these domains remain limited. This fragmentation creates operational inefficiencies, compliance risks, and restricts the full strategic benefits of digital transformation. To address this gap, this study adopts a qualitative approach, using interviews and focus groups, to examine how blockchain, artificial intelligence, and digital tax systems can be systematically integrated into India’s regulatory environment. Findings indicate that while digital tax regimes are expected to enhance efficiency, adoption remains constrained by technological barriers, fragmented regulations, and insufficient standardization. Based on these insights, the study proposes a technology-driven integration model incorporating centralized reporting and blockchain-based real-time auditing to improve transparency, data reliability, and compliance. The research contributes by offering a practical and policy-oriented framework tailored to India’s financial ecosystem, highlighting the need for coordinated regulatory reform and institutional collaboration to support sustainable economic growth.