I haven't done this in a long time, many software revisions ago, but yes, this is how it is supposed to work and has. When I did it, I was driving my S with AP 2.5 hardware. It followed the car in front of me through the turn but it was a little less than confident about the speed to hold or the angle to proper take the turn.
I haven't tried it since. I figured I would wait until people were reporting that it was "amazing" and no longer like driving with a student driver before I tried it again.