It could.  The Hazzard Flasher/Turn Signal Flasher are usually integrated so you will need to change the Hazzard Flasher unit in order to fix your Turn Signal issue.  Little bit of a pain in the butt to get to but better than taking it to the dealer that will rip you a new one just for labor fees. 

I have an 02 225 too. The flasher problem is pretty common. Mine started acting up and got worse as time went on. The flashers worked fine but not the turn signals. The relay is built into the hazard flasher switch and is not that difficult to replace if you are mechanicly handy. You need to remove the radio and the panel above it (make sure you have the radio code). I got a new flasher from VAG parts (England) for under $30.00 US including shipping in 7/08 and made a radoi removal tool myself. The part number is 8N0941509A.  autobuy@bellsouth.net  If you need further instructions email me or look at other posts in this forum.

Good luck,

Syd

Ah....don't laugh at me guys but...I had this problem as well. Once the Audi service tech told me the relay was in the hazard flasher I fixed it with a sharp rap to the top of the dash above the hazard button......

3 months....still working fine.