diff --git a/lms/djangoapps/certificates/queue.py b/lms/djangoapps/certificates/queue.py
index 1fda185830..db744e89d8 100644
--- a/lms/djangoapps/certificates/queue.py
+++ b/lms/djangoapps/certificates/queue.py
@@ -323,9 +323,11 @@ class XQueueCertInterface(object):
 
         # If this user's enrollment is not eligible to receive a
         # certificate, mark it as such for reporting and
-        # analytics. Only do this if the certificate is new -- we
-        # don't want to mark existing audit certs as ineligible.
-        if created and not is_eligible_for_certificate:
+        # analytics. Only do this if the certificate is new, or
+        # already marked as ineligible -- we don't want to mark
+        # existing audit certs as ineligible.
+        if (created or cert.status in (CertificateStatuses.audit_passing, CertificateStatuses.audit_notpassing)) \
+           and not is_eligible_for_certificate:
             cert.status = CertificateStatuses.audit_passing if passing else CertificateStatuses.audit_notpassing
             cert.save()
             LOGGER.info(
diff --git a/lms/djangoapps/certificates/tests/test_queue.py b/lms/djangoapps/certificates/tests/test_queue.py
index 231dd673da..fa76262078 100644
--- a/lms/djangoapps/certificates/tests/test_queue.py
+++ b/lms/djangoapps/certificates/tests/test_queue.py
@@ -205,7 +205,14 @@ class XQueueCertInterfaceAddCertificateTest(ModuleStoreTestCase):
             else:
                 self.assertFalse(mock_send.called)
 
-    def test_regen_audit_certs_eligibility(self):
+    @ddt.data(
+        (CertificateStatuses.downloadable, 'Pass', CertificateStatuses.generating),
+        (CertificateStatuses.audit_passing, 'Pass', CertificateStatuses.audit_passing),
+        (CertificateStatuses.audit_notpassing, 'Pass', CertificateStatuses.audit_passing),
+        (CertificateStatuses.audit_notpassing, None, CertificateStatuses.audit_notpassing),
+    )
+    @ddt.unpack
+    def test_regen_audit_certs_eligibility(self, status, grade, expected_status):
         """
         Test that existing audit certificates remain eligible even if cert
         generation is re-run.
@@ -221,19 +228,19 @@ class XQueueCertInterfaceAddCertificateTest(ModuleStoreTestCase):
             user=self.user_2,
             course_id=self.course.id,
             grade='1.0',
-            status=CertificateStatuses.downloadable,
+            status=status,
             mode=GeneratedCertificate.MODES.audit,
         )
 
         # Run grading/cert generation again
-        with patch('courseware.grades.grade', Mock(return_value={'grade': 'Pass', 'percent': 0.75})):
+        with patch('courseware.grades.grade', Mock(return_value={'grade': grade, 'percent': 0.75})):
             with patch.object(XQueueInterface, 'send_to_queue') as mock_send:
                 mock_send.return_value = (0, None)
                 self.xqueue.add_cert(self.user_2, self.course.id)
 
         self.assertEqual(
             GeneratedCertificate.objects.get(user=self.user_2, course_id=self.course.id).status,  # pylint: disable=no-member
-            CertificateStatuses.generating
+            expected_status
         )