That's the general idea. It doesn't confirm turbo, but it does confirm top end (intake/turbo/valvetrain). Of those, turbo is usually your best bet. If you get the smokeshow, then it's time to check the IC for oil and give the turbine bearing a good feel. If they're OK (and a bit of oil in the IC is not abnormal) then it's most likely valve seals.
That said, if you're in the first stages of turbo seal degradation, the smoke will be tough to see. If you've got a car friend, best to have them ride behind and keep you posted on the phone as you do the test.