How can management’s basis for estimates regarding loans be tested?

Management's basis for estimates regarding loans can be effectively tested by comparing year-end loan balances with current statements. This practice enables auditors to assess the accuracy and reliability of the estimates provided by management, ensuring that they reflect the true financial position of the company.

By examining current statements, auditors can validate whether the loan balances recorded in the financial statements align with what lenders report, which helps in identifying any discrepancies or adjustments that may need to be made. This direct comparison serves as a check on the accounting estimates made by management, ensuring that they are grounded in reality and substantiated by actual financial data from the lending institutions.

The other choices do not directly relate to testing management's estimates for loans. Requesting a list of inventory, recalculating salary anomalies, or discussing rental agreements, while important in their own contexts, do not provide the necessary means to verify the loan estimates, making them less relevant in this scenario.