UPDATE: Defence lawyers are beginning to mount a case after an Australian woman and her British boyfriend were charged with the murder of a police officer in Bali.

Sara Connor, from Byron Bay, and David James Taylor have spent a third night at the Denpasar police station, where they have been detained for allegedly murdering local policeman Wayan Sudarsa on Kuta Beach.

Denpasar Police Chief Hadi Purnomi told the ABC blood from the site of the police officer’s death had been examined.

“From the forensic lab result we found two types of blood on the crime scene: the suspect’s and the victim’s,” he said, without specifying whether he was referring to the Australian woman or her partner.

Police Chief Purnomi said that, during the interrogations, he would not be seeking confessions.

“We interrogate them and from what they say there are some statements that are the same and some statements that are not,” he said.

Mr Sudarsa was found in the early hours of Wednesday with more than 40 wounds police said may have been caused by a broken beer bottle.

Connor, a 45-year-old mother of two, and Taylor have been charged with murder, assault causing death and group assault.

Taylor’s lawyer Haposan Sihombing said the pair deny killing Mr Sudarsa, whose body was cremated after a traditional Hindu ceremony on Sunday.

EARLIER: A “beautiful” and “generous” Australian mother of two and her British boyfriend are suspected of the alleged murder of a local police officer found in gruesome circumstances on a popular Balinese beach.

Sara Connor from Byron Bay and UK national David Taylor have been charged by Balinese police with murder, assault causing death and the group assault of First Inspector Wayan Sudarsa.

Mr Taylor’s lawyer, Haposan Sihombing, claimed Ms Connor told his client that a “bad cop” had pushed her to the ground and tried to sexually assault her on Kuta beach before the incident occurred, according to Fairfax Media reports.

The pair handed themselves into police three days after the incident after they reportedly became aware they were wanted for questioning over the death.

Police said Mr Sudarsa was found early on Wednesday morning (local time). He was lying on Kuta beach with more than 40 wounds that may have been caused by a broken beer bottle.

Under interrogation, Ms Connor reportedly admitted to police she got into an argument with the officer after she reported her missing handbag to him, the Jakarta Post reported.

Ms Connor, 45, has hired lawyer Erwin Siregar, who also represented convicted drug trafficker Schapelle Corby and Bali Nine drug mule Renae Lawrence.

Mr Sudarsa was found in gruesome circumstances on Kuta beach. Photo: ABC

“We named them [Taylor and Connor] suspects based on the evidence we have acquired. Even if they do not confess, it doesn’t matter,” Denpasar Police chief senior commander Hadi Purnomo said.

He cited statements from witnesses, blood of the suspects at the scene and broken beer bottles found at the scene as evidence.

Sr Cmr Purnomo also said blood found at the scene was “identical” to blood found in what was thought to be Ms Connor’s hotel room.

Night ‘drinking and kissing’ turns to horror

Ms Connor and Mr Taylor had planned to spend time together on holiday in Bali. Ms Connor left her two young children in Byron Bay.

Ms Connor’s lawyer, Mr Siregar, said she had arrived in Bali on Tuesday and Mr Taylor met her at the airport, where they bought beer before returning to the man’s homestay.

“Then they are going to the restaurant, she drank a beer, and then they are going to the beach with two beer bottles, one each,” he said.

Taylor is from the UK but had been living in Byron Bay. Photo: AAP

Mr Siregar said the man and woman had been kissing on the beach after arriving at 11:00pm and leaving about 3:00am.

He said Ms Connor also had a bite mark on her leg.

“I saw one only, on her thigh.

“No, no, no, no drugs involved,” he told media outside the Denpasar police station, where the pair is being held.

Both suspects were taken to a Bali Police hospital for forensic examination.

A spokesperson for the Department of Foreign Affairs and Trade told The New Daily it was providing consular assistance to Ms Connor.

“As this case is the subject of an ongoing investigation, and due to our privacy obligations, we will not provide further comment,” the spokesperson said.

Ms Connor’s family and friends released a statement about their loved one.

“The accusations laid against her are totally out of character for this beautiful person. Her love for her boys is the biggest love in her life. She is very passionate about life and exudes enthusiasm wherever she goes,” it read.

– with ABC and AAP