Accountancy is a broader term that encompasses both bookkeeping and auditing. Bookkeeping involves recording financial transactions in a systematic manner, such as maintaining records of sales, purchases, receipts, and payments. It focuses on the accurate and timely recording of financial data.

On the other hand, auditing is the process of examining and evaluating the financial records prepared by bookkeepers to ensure their accuracy and reliability. It involves analyzing financial statements, conducting tests, and verifying the compliance of financial records with accounting principles, laws, and regulations.

The statement "accountancy begins where bookkeeping ends and auditing begins" implies that while bookkeeping is a fundamental part of accountancy, it is not sufficient in itself. Once bookkeeping is complete, the next step is to perform auditing to ensure the accuracy, completeness, and reliability of the financial information.

Auditing goes beyond bookkeeping by providing an independent and objective assessment of the financial records. It helps in identifying any errors, frauds, or irregularities in the financial statements, ensuring that the information presented is trustworthy for decision-making by stakeholders.

In summary, accountancy encompasses both bookkeeping and auditing. Bookkeeping is the initial step of recording financial transactions, while auditing is the subsequent process that verifies and evaluates the accuracy and reliability of the financial records.