CAT light flashing is normally un-burnt fuel going down the pipes but seeing you have a blow i could be blowing near or around where the cat joins the pipe and the sniffers in the CAT's don't like it maybe.
Get her into an exhaust specilist, someone that can bend stainless tube to suit, my cats have been welded onto the pipes and i have made some flanges to help the fitter at the time. There are threads on here about exhaust repairs / fixes and places to buy CAT's if you need to.
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1996 A8 4.2 QS. Bose, Solar roof, um...um... rally sport towbar. Now gone to a new home as the Traders 8.
Bright yellow bus o love.
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