Briefs

Accounting firm Deloitte & Touche repeatedly failed to support its assumptions in problematic audits first flagged in a 2007 inspection, the industry oversight board said in a report. The Public Company Accounting Board investigated Deloitte’s practices in 2007 and found instances when the firm relied too heavily on its clients’ valuation of assets and assumptions on income taxes. The watchdog also said Deloitte did not sufficiently monitor its foreign affiliates. Deloitte says it’s working to improve its practices. This is the first time the board released a detailed report saying a Big Four accounting firm did not resolve problems the board had previously identified.

Ailing clothier Gap plans to shut a fifth of its namesake stores in the U.S. by the end of 2013, as it emphasizes opening new Gap and Banana Republic stores abroad. The company is set to open its first South American Gap store in Chile this month and in Panama and Colombia next year. It also has set a target of operating 45 Gap stores in China by the end of 2012, triple what it plans to have by the end of this year. The company is looking for growth online and will expand its pilot program that ships online orders directly from stores.