The currently accepted magnetic ground state of Sr2IrO4 (the − + +− state) preserves inversion symmetry. This is at odds, though, with recent experiments that indicate a magnetoelectric ground state, leading to the speculation that orbital currents or more exotic magnetic multipoles might exist in this material. Here, we analyze various magnetic configurations and demonstrate that two of them, the magnetoelectric − + −+ state and the non-magnetoelectric + + ++ state, can explain these recent second-harmonic generation (SHG) experiments, obviating the need to invoke orbital currents. The SHG-probed magnetic order parameter has the symmetry of a parity-breaking multipole in the −+−+ state and of a parity-preserving multipole in the ++++ state. We speculate that either might have been created by the laser pump used in the experiments. An alternative is that the observed magnetic SHG signal is a surface effect. We suggest experiments that could be performed to test these various possibilities, and also address the important issue of the suppression of the RXS intensity at the L2 edge.