L 240[6 Official Journal of the European Union 11.9.2010 COMMISSION DECISION of 1 September 2010 on the adequacy of the competent authorities of Australia and the United States pursuant to Directive 2006/43/EC of the European Parliament and of the Council (notified under document C(2010) 5676) (Text with EEA relevance) (2010/485/EU) THE EUROPEAN COMMISSION, Having regard to the Treaty on the Functioning of the European Union, Having regard to Directive 2006/43/EC of the European Parliament and of the Council of 17 May 2006 on statutory audits of annual accounts and consolidated accounts, amending Council Directives 78/660/EEC and 83/349/EEC and repealing Council Directive 84/253[EEC ('), and in particular the first subparagraph of Article 47(3) thereof, After having consulted the European Data Protection Supervisor, Whereas: (1)  In accordance with Article 47(1) and Article 53 of Directive 2006/43[EC, as of 29 June 2008, in case of inspections or investigations of statutory auditors or audit firms, competent authorities of Member States may allow the transfer of audit working papers or other documents held by statutory auditors or audit firms to the competent authorities of a third country only if those authorities have been declared adequate by the Commission and there are reciprocal working arrangements between them and the competent authorities of the Member States concerned. It therefore needs to be determined which competent authorities of third countries are adequate for the purpose of the transfer of audit working papers or other documents held by statutory auditors or audit firms to the competent authorities of a third country. (2) A transfer of audit working papers or other documents held by statutory auditors or audit firms to the competent authorities of a third country reflects a substantial public interest related to carrying out inde- pendent public oversight. Accordingly, any such transfer by the competent authorities of Member States should be made solely for the purpose of the exercise of the competences of public oversight, external quality assurance and investigations of auditors and audit firms by the competent authorities of the third country concerned. Member States should ensure that the bilateral working arrangements which allow the transfer of audit working papers or other documents held by () O] L 157, 9.6.2006, p. 87. statutory auditors or audit firms between their competent authorities and the competent authorities of Australia and the United States contain appropriate safeguards with regard to the protection of personal data as well as the protection of professional secrets and sensitive commercial information related to the companies whose financial statements are audited as well as the auditors of such companies comprised in such papers. The persons employed or formerly employed by competent authorities of the third country that receive the information are subject to obligations of professional secrecy. (3)  Without prejudice to Article 47(4) of Directive 2006/43/EC, Member States should ensure that, for the purpose of public oversight, quality assurance and inves- tigations of auditors and audit firms, and contacts between the auditors or audit firms of the Member States and the competent authorities of Australia and the United States take place via the competent authorities of the Member State concerned. (4)  Member States may decide to accept joint inspections in exceptional circumstances where this is necessary to ensure effective supervision. Member States may allow that cooperation with the competent authorities of Australia and the United States takes place under the form of joint inspections or through observers without inspection or investigation powers and without access to the confidential audit working papers or to other documents held by statutory auditors or audit firms. Such cooperation should always take place under the conditions set out in Article 47(2) of Directive 2006/43/EC and in this Decision, in particular as regards the need to respect sovereignty, confidentiality and reciprocity. Member States should ensure that any joint inspections carried out by their competent authorities and the competent authorities of Australia and the United States on the territory of Member States pursuant to Article 47 of Directive 2006/43/EC should be under the leadership of the competent authority of the Member State concerned. (5)  Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data (?) applies to the processing of personal data carried out pursuant to that (3 OJ L 281, 23.11.1995, p. 31.