diff --git a/lms/djangoapps/certificates/models.py b/lms/djangoapps/certificates/models.py
index f87b5c7b5d..a375b980a7 100644
--- a/lms/djangoapps/certificates/models.py
+++ b/lms/djangoapps/certificates/models.py
@@ -95,7 +95,9 @@ class CertificateStatuses(object):
     readable_statuses = {
         downloadable: "already received",
         notpassing: "didn't receive",
-        error: "error states"
+        error: "error states",
+        audit_passing: "audit passing states",
+        audit_notpassing: "audit not passing states",
     }
 
     PASSED_STATUSES = (downloadable, generating)
diff --git a/lms/djangoapps/instructor/tests/test_certificates.py b/lms/djangoapps/instructor/tests/test_certificates.py
index 82ffb70641..14e404af84 100644
--- a/lms/djangoapps/instructor/tests/test_certificates.py
+++ b/lms/djangoapps/instructor/tests/test_certificates.py
@@ -3,12 +3,21 @@ import contextlib
 import ddt
 import mock
 import json
+import pytz
+
+from datetime import datetime, timedelta
 
 from nose.plugins.attrib import attr
 from django.core.urlresolvers import reverse
 from django.core.exceptions import ObjectDoesNotExist
 from django.test.utils import override_settings
 from django.conf import settings
+
+from course_modes.models import CourseMode
+from capa.xqueue_interface import XQueueInterface
+from lms.djangoapps.grades.tests.utils import mock_passing_grade
+from lms.djangoapps.verify_student.tests.factories import SoftwareSecurePhotoVerificationFactory
+from lms.djangoapps.verify_student.models import SoftwareSecurePhotoVerification
 from xmodule.modulestore.tests.django_utils import SharedModuleStoreTestCase
 from xmodule.modulestore.tests.factories import CourseFactory
 from config_models.models import cache
@@ -344,6 +353,85 @@ class CertificatesInstructorApiTest(SharedModuleStoreTestCase):
             u'the "Pending Tasks" section.'
         )
 
+    @override_settings(AUDIT_CERT_CUTOFF_DATE=datetime.now(pytz.UTC) - timedelta(days=1))
+    @ddt.data(
+        (CertificateStatuses.generating, 'ID Verified', 'approved'),
+        (CertificateStatuses.unverified, 'Not ID Verified', 'denied'),
+    )
+    @ddt.unpack
+    def test_verified_users_with_audit_certs(self, expected_cert_status, verification_output, id_verification_status):
+        """
+        Test certificate regeneration for verified users with audit certificates.
+
+        Scenario:
+            Enroll user in a course in audit mode,
+            User passed the course and now he has `audit_passing` certificate status,
+            User switched to verified mode and is ID verified,
+            Regenerate certificate for it,
+            Modified certificate status is `generating` if user is ID verified otherwise `unverified`.
+        """
+        # Check that user is enrolled in audit mode.
+        enrollment = CourseEnrollment.get_enrollment(self.user, self.course.id)
+        self.assertEquals(enrollment.mode, CourseMode.AUDIT)
+
+        with mock_passing_grade():
+            # Generate certificate for user and check that user has a audit passing certificate.
+            cert_status = certs_api.generate_user_certificates(
+                student=self.user,
+                course_key=self.course.id,
+                course=self.course,
+            )
+
+            # Check that certificate status is 'audit_passing'.
+            self.assertEquals(cert_status, CertificateStatuses.audit_passing)
+
+            # Update user enrollment mode to verified mode.
+            enrollment.update_enrollment(mode=CourseMode.VERIFIED)
+            self.assertEquals(enrollment.mode, CourseMode.VERIFIED)
+
+            # Create and assert user's ID verification record.
+            SoftwareSecurePhotoVerificationFactory.create(user=self.user, status=id_verification_status)
+            actual_verification_status = SoftwareSecurePhotoVerification.verification_status_for_user(
+                self.user,
+                self.course.id,
+                enrollment.mode,
+            )
+            self.assertEquals(actual_verification_status, verification_output)
+
+            # Login the client and access the url with 'audit_passing' status.
+            self.client.login(username=self.global_staff.username, password='test')
+            url = reverse(
+                'start_certificate_regeneration',
+                kwargs={'course_id': unicode(self.course.id)}
+            )
+
+            with mock.patch.object(XQueueInterface, 'send_to_queue') as mock_send:
+                mock_send.return_value = (0, None)
+                response = self.client.post(
+                    url,
+                    {'certificate_statuses': [CertificateStatuses.audit_passing]}
+                )
+
+                # Assert 200 status code in response
+                self.assertEquals(response.status_code, 200)
+                res_json = json.loads(response.content)
+
+                # Assert request is successful
+                self.assertTrue(res_json['success'])
+
+                # Assert success message
+                self.assertEquals(
+                    res_json['message'],
+                    u'Certificate regeneration task has been started. '
+                    u'You can view the status of the generation task in '
+                    u'the "Pending Tasks" section.'
+                )
+
+            # Now, check whether user has audit certificate.
+            cert = certs_api.get_certificate_for_user(self.user.username, self.course.id)
+            self.assertNotEquals(cert['status'], CertificateStatuses.audit_passing)
+            self.assertEquals(cert['status'], expected_cert_status)
+
     def test_certificate_regeneration_error(self):
         """
         Test certificate regeneration errors out when accessed with either empty list of 'certificate_statuses' or
diff --git a/lms/djangoapps/instructor/views/api.py b/lms/djangoapps/instructor/views/api.py
index 8b27e24b49..fe3484cf9c 100644
--- a/lms/djangoapps/instructor/views/api.py
+++ b/lms/djangoapps/instructor/views/api.py
@@ -2862,7 +2862,13 @@ def start_certificate_regeneration(request, course_id):
         )
 
     # Check if the selected statuses are allowed
-    allowed_statuses = [CertificateStatuses.downloadable, CertificateStatuses.error, CertificateStatuses.notpassing]
+    allowed_statuses = [
+        CertificateStatuses.downloadable,
+        CertificateStatuses.error,
+        CertificateStatuses.notpassing,
+        CertificateStatuses.audit_passing,
+        CertificateStatuses.audit_notpassing,
+    ]
     if not set(certificates_statuses).issubset(allowed_statuses):
         return JsonResponse(
             {'message': _('Please select certificate statuses from the list only.')},
diff --git a/lms/templates/instructor/instructor_dashboard_2/certificates.html b/lms/templates/instructor/instructor_dashboard_2/certificates.html
index e84c47ae6e..ce9e955289 100644
--- a/lms/templates/instructor/instructor_dashboard_2/certificates.html
+++ b/lms/templates/instructor/instructor_dashboard_2/certificates.html
@@ -128,6 +128,18 @@ from openedx.core.djangolib.js_utils import dump_js_escaped_json, js_escaped_str
                         ${_("Regenerate for learners who have not received certificates. ({count})").format(count=section_data['certificate_statuses_with_count'].get(section_data['status'].notpassing, 0))}
                     </label>
                 </div>
+                <div>
+                    <label>
+                        <input id="certificate_status_${section_data['status'].audit_passing}" type="checkbox" name="certificate_statuses" value="${section_data['status'].audit_passing}">
+                        ${_("Regenerate for learners with audit passing state. ({count})").format(count=section_data['certificate_statuses_with_count'].get(section_data['status'].audit_passing, 0))}
+                    </label>
+                </div>
+                <div>
+                    <label>
+                        <input id="certificate_status_${section_data['status'].audit_notpassing}" type="checkbox" name="certificate_statuses" value="${section_data['status'].audit_notpassing}">
+                        ${_("Regenerate for learners with audit not passing state. ({count})").format(count=section_data['certificate_statuses_with_count'].get(section_data['status'].audit_notpassing, 0))}
+                    </label>
+                </div>
                 <div>
                     <label>
                         <input id="certificate_status_${section_data['status'].error}" type="checkbox" name="certificate_statuses" value="${section_data['status'].error}">