Do you mean you want to make the storybook (ie you will read the story and record it in audacity).
You will not need any other software apart from your pc and audacity to do this. All you need to do is talk into the mic, record it, then export your tracks as wav files (or mp3) then burn these files to a cd and hey presto there is your cd storybook.
To get the best sound ideally you will record into a mic through a pop screen and into a mixing desk then into your computer but this isnt totally nessesary if you have a reasonable usb mic and you can always adjust the eq in audacity.