Denpasar police chief Hadi Purnomo said a lawyer and translator would be present during the interrogation.

"We will determine their status within 24 hours," Mr Purnomo said.

If charged with second degree murder, the pair would face a maximum of 15 years in jail.

Mr Purnomo said Mr Taylor had been taken to the crime scene at Kuta Beach in front of the Pullman Hotel on Saturday morning.

He said so far Mr Taylor had only admitted that he and Ms Connor had been at that location.

Asked if they had admitted to encountering the slain police officer, Mr Purnamo said: "That's being investigated. They've only admitted being at the scene."

He said police were still investigating whether others may have allegedly been involved.

Ms Connor, a mother-of-two from NSW's Far North Coast, and Mr Taylor were brought to Denpasar police station on Friday afternoon with staff from the Australian consulate in Bali.

It came after images of Ms Connor's driver's licence and visa were printed on wanted posters and plastered across hotels and police stations through the popular holiday island.

Police had initially said they wanted to question Ms Connor and another man, Tomas Schon, in relation to the murder of the police officer on Kuta Beach.

It later emerged police had the wrong name and Mr Schon told Fairfax Media he was in Europe and "had never been to Bali in his life".

Mr Schon said he had known Ms Connor from when he lived in Australia for three years and the photos of him the police had mistakenly used on the wanted posters had been taken from Facebook.

"I have never been to Bali, never in my life. I am now going to talk to a lawyer," he said.

David Taylor was then revealed as the man Bali police were after.

Ms Connor's arrest has shocked friends and relatives back home in Byron Bay.

"Sara is the least violent person I have ever met," one close friend said on Saturday.

"She is like a puppy dog."

Ms Connor works as a housekeeper at the Nomads Arts Factory Lodge and also creates handmade pasta for her company, Byron Bay Fresh Pasta.

She separated from her husband a couple of years ago but the pair used to live in London and Berlin before moving to Byron Bay.

Mr Taylor also goes by the name DJ Nutzo and according to social media lived in Byron Bay, played various gigs around town and worked at a local brewery.

Bali police chief Sugeng Priyanto said on Friday that Ms Connor had claimed she was drunk and couldn't remember much.

"She did say she lost her bag during the incident," he said.

He said Mr Taylor refused to answer any questions and was waiting for his lawyer. Mr Taylor had told police that wounds on his hands had been sustained some time ago.

Alerts were issued at the airport and all seaports to prevent the pair from leaving the resort island.

However, after leaving their homestay in Kutam Mr Taylor and Ms Connor went to a place in Jimbaran Bay where they contacted the Australian consulate in Bali.

On Friday the family of dead police officer, Wayan Sudarsa, held a Balinese traditional ritual known as Ngulapin, which helps victims and their families become calmer.

The ceremony, which takes place at the scene of the death, calls the spirit back.

Police say a smashed Bintang beer bottle and a broken body board, found near the victim's body, may have been used as weapons to kill the police officer - Wayan Sudarsa.

He had been attacked by more than one person and had 42 wounds to his body, the head of Sanglah Forensics and Morgue, Dr Dudut Restiadi, said.

Finger marks on his arm suggested he had been held down during the attack.

Mr Sudarsa's walkie-talkie was lying in the sand, just inches from his ear, while a police cap was nearby. He had been on duty at the time of his death.

Police identified Ms Connor as someone they were keen to talk to after her handbag, with her driver's licence and credit card, was found near the officer's bloodied body on the beach outside the Pullman Hotel in Kuta.

Mr Sudana said police had spoken to several witnesses including security officers, traditional guards, known as pecalang and ojek (motorcycle taxi) drivers.

"One of the ojek drivers saw [a foreign man] at the scene - he was seen covered in sand," he said.

Police went to Kubu Kauh Beach Inn in Kuta, where the man had been staying, and found blood in his room and on the scooter he had rented.

"One of the maids at Kubu Kauh Beach Inn also noticed blood on a towel," Mr Sudana said.

Eddie Sasongko, who helps out at the Kubu Kauh Beach Inn, said he saw a man and a woman leave the homestay about 7.30pm on Wednesday.

"I was taking out the garbage at the inn, I saw the man walking out of the inn, pulling a trolley suitcase. He wasn't alone, he was with a woman. It's the woman from the police picture. I am sure.""I asked him: 'You check out?' He said 'Yes.' They weren't in a hurry, they were relaxed." Police are reviewing CCTV footage from security cameras near the crime scene.

Pullman Hotel security guard Hendri Hardianto said he and another security guard were on duty at the gate in the early hours of Wednesday.

"It was sometime after 1am. We heard a loud scream. It wasn't a scream for help, just a scream, arrgggghhhhh, something like that. I stayed at the gate, my friend went to the beach to check it out."