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Yes, the Audible app will work with books in your iTune library. But it will NOT sync them. You need to download them _directly_ to Audible from Audible. Not by way of iTunes.
FWIW, I download immediately from Audible to my desktop and put in iTunes and the Audible Manager. And when I have a few built up, I strip them of DRM and store on the server as M4b books.
But to enable cross-device syncing, I always download from the Audible App on my iPhone and Fire directly. That's the requirement for syncing to work. And it does work just fine. But not when iTunes is in the way.
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