diff --git a/lms/djangoapps/certificates/generation_handler.py b/lms/djangoapps/certificates/generation_handler.py
index 4757b01718..a46207450a 100644
--- a/lms/djangoapps/certificates/generation_handler.py
+++ b/lms/djangoapps/certificates/generation_handler.py
@@ -95,9 +95,9 @@ def generate_allowlist_certificate_task(user, course_key, generation_mode=None):
     if _can_generate_allowlist_certificate(user, course_key):
         return _generate_certificate_task(user, course_key, generation_mode)
 
-    status = _set_allowlist_cert_status(user, course_key)
-    if status is not None:
-        return True
+#    status = _set_allowlist_cert_status(user, course_key)
+#    if status is not None:
+#        return True
 
     return False
 
@@ -110,9 +110,9 @@ def generate_regular_certificate_task(user, course_key, generation_mode=None):
     if _can_generate_v2_certificate(user, course_key):
         return _generate_certificate_task(user, course_key, generation_mode)
 
-    status = _set_v2_cert_status(user, course_key)
-    if status is not None:
-        return True
+#    status = _set_v2_cert_status(user, course_key)
+#    if status is not None:
+#        return True
 
     return False
 
diff --git a/lms/djangoapps/certificates/tests/test_api.py b/lms/djangoapps/certificates/tests/test_api.py
index 456f3dc745..ee84de3c22 100644
--- a/lms/djangoapps/certificates/tests/test_api.py
+++ b/lms/djangoapps/certificates/tests/test_api.py
@@ -4,6 +4,7 @@
 import uuid
 from contextlib import contextmanager
 from datetime import datetime, timedelta
+from unittest import mock
 from unittest.mock import patch
 
 import ddt
@@ -71,6 +72,7 @@ from lms.djangoapps.grades.tests.utils import mock_passing_grade
 from openedx.core.djangoapps.content.course_overviews.tests.factories import CourseOverviewFactory
 from openedx.core.djangoapps.site_configuration.tests.test_util import with_site_configuration
 
+CAN_GENERATE_METHOD = 'lms.djangoapps.certificates.generation_handler._can_generate_v2_certificate'
 FEATURES_WITH_CERTS_ENABLED = settings.FEATURES.copy()
 FEATURES_WITH_CERTS_ENABLED['CERTIFICATES_HTML_VIEW'] = True
 
@@ -550,6 +552,7 @@ class GenerateUserCertificatesTest(EventTestMixin, WebCertificateTestMixin, Modu
         self.enrollment = CourseEnrollment.enroll(self.student, self.course.id, mode='honor')
         self.request_factory = RequestFactory()
 
+    @mock.patch(CAN_GENERATE_METHOD, mock.Mock(return_value=True))
     @patch.dict(settings.FEATURES, {'CERTIFICATES_HTML_VIEW': True})
     def test_new_cert_request_for_html_certificate(self):
         """
@@ -560,7 +563,7 @@ class GenerateUserCertificatesTest(EventTestMixin, WebCertificateTestMixin, Modu
             generate_user_certificates(self.student, self.course.id)
 
         cert = GeneratedCertificate.eligible_certificates.get(user=self.student, course_id=self.course.id)
-        assert cert.status == CertificateStatuses.unverified
+        assert cert.status == CertificateStatuses.downloadable
 
     @patch.dict(settings.FEATURES, {'CERTIFICATES_HTML_VIEW': False})
     def test_cert_url_empty_with_invalid_certificate(self):
diff --git a/lms/djangoapps/certificates/tests/test_generation_handler.py b/lms/djangoapps/certificates/tests/test_generation_handler.py
index 9336fe5953..fecb341d2e 100644
--- a/lms/djangoapps/certificates/tests/test_generation_handler.py
+++ b/lms/djangoapps/certificates/tests/test_generation_handler.py
@@ -323,6 +323,36 @@ class CertificateTests(ModuleStoreTestCase):
         assert not generate_certificate_task(other_user, self.course_run_key)
         assert not generate_regular_certificate_task(other_user, self.course_run_key)
 
+    def test_handle_audit_status(self):
+        """
+        Test handling of a user who is not passing and is enrolled in audit mode
+        """
+        different_user = UserFactory()
+        CourseEnrollmentFactory(
+            user=different_user,
+            course_id=self.course_run_key,
+            is_active=True,
+            mode=GeneratedCertificate.MODES.audit,
+        )
+
+        assert _set_v2_cert_status(different_user, self.course_run_key) is None
+        assert not generate_regular_certificate_task(different_user, self.course_run_key)
+
+    def test_handle_verified_status(self):
+        """
+        Test handling of a user who is not passing and is enrolled in verified mode
+        """
+        different_user = UserFactory()
+        CourseEnrollmentFactory(
+            user=different_user,
+            course_id=self.course_run_key,
+            is_active=True,
+            mode=GeneratedCertificate.MODES.verified,
+        )
+
+        assert _set_v2_cert_status(different_user, self.course_run_key) == 'notpassing'
+        assert generate_regular_certificate_task(different_user, self.course_run_key)
+
     def test_is_using_updated_true(self):
         """
         Test the updated flag
diff --git a/lms/djangoapps/instructor_task/tests/test_tasks_helper.py b/lms/djangoapps/instructor_task/tests/test_tasks_helper.py
index e5a62ed18e..dcb54baebf 100644
--- a/lms/djangoapps/instructor_task/tests/test_tasks_helper.py
+++ b/lms/djangoapps/instructor_task/tests/test_tasks_helper.py
@@ -2087,7 +2087,7 @@ class TestCertificateGeneration(InstructorTaskModuleTestCase):
             'failed': 0,
             'skipped': 2
         }
-        with self.assertNumQueries(74):
+        with self.assertNumQueries(55):
             self.assertCertificatesGenerated(task_input, expected_results)
 
     @ddt.data(