Evaluating pre-audit risk at the overall level involves a thorough assessment of the potential for material misstatements within the entire set of financial statements. This evaluation, coupled with the planning materiality, is crucial in determining the overall effort necessary for the entire audit process. Essentially, the higher the likelihood of material misstatements, the more extensive the audit work required. This entails a detailed examination of the entire financial landscape to ensure that all potential risks and inaccuracies are identified and addressed. This approach allows for a more nuanced and tailored audit strategy, ensuring a meticulous and effective evaluation of the financial statements as a whole.