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I am going to say 'blown turbo'. As I understand it, they needs replacing every few years. They are susceptible to heat and incredible revolutions. They have to be lubricated, the seals go, and you get smoke.
YOU NEED A 2008 AUDI CHILTON REPAIR MANUAL.TO REPLACE TURBO YOU HAVE AT LEAST 60 COMPONENTS YOU HAVE TO REMOVE IN ORDER TO REPLACE TURBOCHARGER ME TELLING YOU IN WRITING WONT HELP YOU NEED TO LOOK AT PARTS DIAGRAM TO SEE PARTS YOU HAVE TO REMOVE AND DISCONNECT.
There are several possible faults:
1. Pressure sensor is faulty (it might come up on diagnostics as if it was working fine, but it shows the wrong manifold pressure).
2. Either one of the boost pipes/hoses or the intercooler have a hole somewhere.
3. Turbo's actuator is stuck.
4. Vacuum hose is damaged which goes in to the turbo actuator.
5. Control valve for the turbo actuator is not working properly.
Your mechanic is spot on. The A4's are notorious for turbo overheating and failure. The oil burn is coming in the TURBO itself and then being distributed to 2.3.4 as a side effect. Your not noticing blue smoke because your catalytic converter is doing its job and the minor smoke being generated is being taken care of in the CAT. If you continue to drive as is you will run a certain risk of catalytic converter damage, cylinder damage from fouling (cylinder wash) build up, sludge, etc. If your mechanic has the knowledge on this specifc model there is a way to test the turbo output and turbo heat generation to absolutely confirm. One last thing. in ANY turbo car its imperative to run QUALITY oils not your local wal-mart brand or no name. Many people are not familiar with the demands on a TURBO engine and oil change facilities pull standard oil from 55 gallon drums via a pump.. so you arent feeding your car properly. The AVG (Audi/Volkswagen) company recommends FULL SYNTHETIC and either Castrol or Mobil 1. I have a Turbo Diesel and use Mobil1 as my choice. The recommended oil for your car via their web page is
4cyl. 1.8Liter Turbocharged Mobil 1 0W-40 A fully synthetic motor oil, Mobil 1 0W-40 with SuperSyn Technology exceeds industry standards and the major leading builder requirements, enabling the product to keep performing well after conventional oils cannot. Mobil 1 is recommended by leading car manufacturers as initial fill
16619 -Engine boost condition - Limit not reached. Check intake hoses/ connections for leaks. Check Turbo charger waste gate regulating valve/ waste gate working correctly. Must move freely when accelerating, won't achieve full boost if waste gate sticking open. Check Turbo impeller turning freely, oil feed pipe for turbo can get blocked causing impeller to seize. Engine compact, not easy to access these components.